Common use of Security Payment Clause in Contracts

Security Payment. This represents a discretionary payment which is payable at the time a claim is reported. This payment arises where there is uncertainty as to whether the claim is covered. The security payment is a fixed payment of £75. If following the diagnosis, the engineer confirms that the fault is one that is covered this payment will be reimbursed. If the engineer confirms the fault is not covered there will be no reimbursement of this fee. If this payment is not paid there is a discretion to decline your claim. Service agreement - means the document sent to you confirming the commencement date, your details, cover type and details of any cover.