Glossaire

Means of settling losses which, in the event of a "Constructive Total Loss" as stipulated in the policy, allows the assured to abandon all rights of ownership of the lost or damaged property and still claim full settlement from the insurer.

Clauses that define or modify the coverage provided in the General Conditions of the standard policy.

An additional premium depends on the type of risk for which the insurer requires an extension of cover.

Insurance that covers each and every loss or damage except what is specifically excluded under the policy.

An individual appointed by the insurer to implement, at the point of delivery or while in transit, any assessment of loss or damage. Also called a surveyor.

Also referred to as General Average Agreement." When an act of General Average has taken place, a document presented for signature by the consignee at the time of delivery of the cargo, in which the consignee undertakes to pay the contribution resulting from settlement of the general average as established by one or more surveyors or settling agents. In addition to signing the average bond, the consignee will either pay a "general average deposit" or submit a declaration by the insurer of the cargo stating its agreement to pay the full amount of the contribution when finally settled.

All insurable goods in transit, whether by sea, road, inland waterways or air.

Any occurrence arising out of the same event, resulting in damage to and/or loss of the insured property.

Act of hiring a vessel in accordance with the terms and conditions of the agreement.

A document that indicates the amount due from the insurers following a claim, in accordance with the terms and conditions of the policy.

A share in the same risk declared under a single contract placed with several insurers who will each be liable for their share of the total sum insured.

Actual contact of a vessel with another ocean-going vessel, river craft or floating object.

Subject to certain conditions, in the event of a financial loss to the assured, the intention of this cover is to reinstate any loss of income as if the loss had never occurred.

The striking of a vessel with an object or structure other than a vessel, river craft or floating object, such as wharfs, cranes, dykes, fixed shore gears.

An insurance policy that provides All Risks coverage of construction risks or the risks involved in assembling structures such as factories, industrial plants, tunnels, bridges, etc.

Term used in export sales contracts in which the sale price specifically includes the prime cost of the goods plus insurance and freight charges. Buyer pays import duty and other charges at destination.

See Incoterms

An amount per contract for which the assured remains liable in the event of a loss.

The seller relinquishes full responsibility once the goods are at the frontier. This type of contract normally applies to transit risks between bordering countries.

When a bank acts on its own behalf or at the request and/or in accordance with the instructions of a client to:
- arrange payment to a third party or accept payment by banker's draft from the beneficiary ;
- authorize other banking institutions to proceed with the said payment or accept said banker's draft.

Documentary Credits may be revocable (in which case they may be cancelled) or irrevocable.

A written agreement attaching to a policy that adds or subtracts insurance coverage. Several types of endorsement exist. They are used to:
- amend the terms and conditions of a policy (Endorsement to agreement)
- transfer the contract to another named party (Transfer endorsement)
- extend the cover to include a third party (Delegation endorsement)
- apply to a specific voyage, attaching to a cover (Pro-forma endorsement)
- transfer the rights to a bank, giving evidence of insurance cover, as with a letter of credit (Certificate)
- amend premiums owed by the assured.(Endorsement at premium due)

A clause enabling the assured to endorse a policy or an endorsement of a policy with the name of a third party.

Any occurrence that is likely to cause or that has caused damage to a means of transport or cargo.

Expenses incurred to prevent loss or damage or to protect insured cargo from any further physical loss or damage.

Means of securing the cargo (in crates, on trucks, in containers or on wooden pallets, etc.).

A professional who, in his own name and under his own responsibility, ensures that all requirements (including legal ones) have been taken care of before issuing a Bill of Lading as confirmation.

Once the goods are placed alongside the vessel for on-forwarding, the buyer accepts full responsibility for any damage and/or destruction thereto

See Incoterms

A marine insurance clause that limits the insurance company's liability strictly to those events listed in the policy.

Sales contracts involving sea transit in which the exporter’s stated price includes the value of the goods plus the costs involved in transporting and loading the cargo on board the ship specified by the buyer.

See Incoterms

Free trade agreement that allows an insurance company within the European Union to do business in other member states.

Charge for goods transported by land or sea.

There is a general average act when, and only when, an extraordinary sacrifice or expenditure is intentionally and reasonably made or incurred for the common safety and for the purpose of preserving the property involved in a common maritime adventure from peril.

Payment by the shipowner and the cargo owners involved in a general average act towards the general average fund. The contribution is apportioned between the shipowner and the owners of the cargo on the basis of the contributory value of the properties. An approximate evaluation of the general average contribution is made by the shipowner, who has a lien on the goods and will release them to consignees only after payment of a deposit of money based on the estimated contribution. Final adjustment is drawn up by a general average adjuster.

Land carrier (i.e., by rail, road or waterways) that agrees to move goods at a fixed price and within a defined period of time.

Fiber rope used for towing or working the ship.

The hull of a ship.

A list of international rules that apply to sales agreements, frequently referred to in foreign trading. The Incoterms are published and regularly revised by the International Chamber of Commerce (ICC).

Loss or damage originating from the nature of the object, independently of all external influences.

A document that describes the insured goods and sets out the type of insurance cover, terms and extent of insurance and the insured values. It may be drawn up on behalf of a named party, a party mentioned on an endorsement to the policy or the bearer. The insurance certificate is transferable.

Sum for which goods are insured when insurance is contracted (voyage policy) or when items are declared (open policy; floating policy).

The International Management Code for the Safe Operation of Ships and for Pollution Prevention (International Safety Management: ISM Code) was adopted by the International Maritime Organization (IMO) on November 4th, 1993. Implementation of the ISM Code is obligatory in all the Member States under Chapter IX of the International Convention for the Safety of Life at Sea (SOLAS) of 1974. This code establishes a management system in shipping companies to ensure the safe operation of ships and the prevention of pollution. The Code is drawn up by the International Maritime Organization (IMO) and reproduced in Chapter IX of the International Convention for the Safety of Life at Sea (SOLAS). Implementation of the ISM Code is obligatory in all the Member States.

Leading insurance company among several co-insurers underwriting a risk. The leader sets the terms and conditions of the policy.

An intermediary specializing in the placement of marine business on behalf of the client.

A new category of transport operators, particularly multimodal carriers.

The portion of risk retained by the assured in the event he is under-insured.

A written declaration that the consignee must provide the carrier (or any other responsible third party) to enable recovery in the event of a loss occurring).

Operational capability is defined on the basis of the satellite’s technical specifications. Often, a formula is introduced to take account of the principal performances guaranteed. In the case of conventional telecommunications satellites, it is a question of the number channels (transponders) and the life expectancy of the satellite. The operational capability is expressed in transponder years in this case. The reference parameters will be the number of satellite transponders that were tested during the pre-launch testing phase and the life expectancy estimated at the time of launch, in particular with reference to the amount of fuel on-board. An observation of the real situation is made when the satellite in orbit is accepted, and if the situation differs from that initially expected, then the amount of the loss will be equal to the loss proportionate to the reference value, after any deductibles under the policy are taken into account. In other cases, the operational capability is expressed in the form of shooting capability, available memory, liaison record and global data transmission capacities. The difficulty here lies in finding a simple, unambiguous and easily interpretable expression in the event of a claim.

A normal and inevitable loss and/or leakage during transit that is inherent in certain goods. Sometimes referred to as "normal loss in transit."

The normal risks of transit, as opposed to risks of war, strikes, riots and civil commotion etc., which are considered to be exceptional risks.

Expenses, damage or loss to cargo during transportation by sea, waterway, land or air, and affecting only the shipper or owner. (In this case, the average is particular to a single interest rather than general to all assured parties).

Method of estimating damaged goods based on either monetary value or percentage value when the loss or damage cannot be precisely calculated in terms of weight or quantity (damp cargo, for instance). Sometimes referred to as allowances.

Any event likely to occur during sea transit.

A specialist appointed to detect, evaluate and find ways to minimize the overall financial exposure of a company, market, new product or a credit institution.

An individual and/or company appointed by the insurer to act on its behalf and authorize settlement of losses at the point of delivery.

An individual who delivers goods to the exporter, whether or not he is the owner.

Vessels that belong to the same owner.

Methodically storing of cargo for shipment, whether within the vessel, containers or a road or rail vehicle.

Loading of goods into a container or tank.

The principle of "subject to average" is that in the event of loss or damage claims are settled proportionately on the basis of the insured value and not on the real value of the subject matter insured.

A document produced by the average agent in which a description of the nature, cause, origin and extent of loss and damage is given.

Transportation by oceangoing vessels on request as opposed to transportation via a regular shipping line. The vessel operating this way, sails under no pre-fixed route.

A representative of insurance companies specializing in marine insurance.

Insurance coverage on goods (packed suitably for transit) from the time they leave the dispatcher's warehouse until the time they enter the consignee's warehouse.