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Ocean Cargo Insurance - Glossary of crime and insurance terms Category: Business and Law > Glossary of crime and insurance terms Date & country: 16/11/2010, USA Words: 28

assailing thieves
Forcible taking of property but not sneak thievery.

average
Any partial loss or damage, due to insured perils.

average agreement
Document signed by cargo owners by terms of which they agree to pay any General Average contribution properly due so that cargo may be released after a General Average loss has occurred.

average clauses
Clauses in Cargo policy that determine the amount of Particular Average loss recovery.

average irrespective of percentage
Broadest "with average" clause. Losses by insured perils are paid regardless of percentage.

barratry
Fraudulent, criminal, or wrongful act by ship's captain or crew which causes loss or damage to the ship or cargo.

bill of lading
Contract of carriage between shipper and steamship company which is the ship owner's receipt for the goods and is the document of title to them.

cargo war risk policy
A separate Cargo policy covering cargo while waterborne only (except at transshipping point, which may be on land or water). Insures against war risks.

consignee
Individual or company to whom cargo is shipped or consigned.

ctl (constructive total loss)
An instance in which the cost of recovering and/or repairing damaged goods would, when recovered or repaired, exceed the insured value.

declaration
Form filled out by assured and sent to the insurance company when reporting individual shipments coming within the terms of an Open policy.

deviation
A vessel's going to some other point or taking some course other than that described in the Bill of Lading.

general average
Loss resulting from a voluntary sacrifice of any part of the vessel or cargo, or an expenditure to safeguard the vessel and the rest of the cargo. When such a loss occurs, it is paid on a pro rata basis by the ship owner and all cargo owners.

inchmaree clause
(So-called for a famous legal decision involving a vessel of that name.) Covers losses resulting from a latent defect in the vessel's hull or machinery and losses resulting from errors in navigation or management of the vessel by the master or crew.

insured value
Usually computed by adding the invoice cost, guaranteed freight, other costs, and insurance premium plus a percentage, commonly 10%. This usually represents landed value.

invoice
Document which shows the terms of sale; contains full description of goods, sale price, charges, discounts, etc.

jettison
Voluntary dumping either of cargo or of ship's material or stores overboard, to protect other property from a common danger.

landed value
Wholesale market value at destination on final day of discharge.

marine extension clause
Cargo policy clause that continues coverage on goods during deviation, delay, re-shipment, and transshipment, or any other variation in normal transit beyond the assured's control.

marine surveyor
Specialist who determines the nature, extent and cause of loss and/or damage.

master's protest
Sworn statement by captain describing any unusual happening during the voyage.

particular average
Partial loss sustained by goods insured.

perils of the sea
Hazards from natural forces in or about navigable waters (windstorm, rough weather, etc., but not fire, explosion, etc., which are perils on the sea).

terms of sale
The following are brief descriptions of the more common Terms of Sale (fully defined in the "American Foreign Trade Definitions 1941"), setting forth the obligations of the seller and buyer.

terms or methods of payment
If the insured is not paid for any reason, he/she must dispose of the goods and, therefore, still has an insurable interest. Following are the more common Terms or Methods of Payment:

valuation clause
Provides basis for determining insured value of a shipment under the Open Cargo policy.

war risk
Insurance against loss or damage to property as a result of war risks.

warehouse to warehouse
An export/import policy clause that provides protection from the shipper's ware-house and during ordinary course of transit to the consignee's warehouse.