A |
|
|
|
Abandonment |
Giving
up the proprietary rights in insured property to the underwriter in exchange for payment
of a constructive total loss |
|
|
Actual
Total Loss |
This
occurs when:
the insured property is
completely destroyed
the assured is
irretrievably deprived of the insured property
cargo changes in
character so that it is no longer the thing that was insured e.g. cement, water damaged
becomes concrete
a ship is posted
"missing" at Lloyd's. |
|
|
Adventure |
The
exposure of property to risk |
|
|
AFT |
Toward,
at, or near the stern |
|
|
Assignment |
The
passing of beneficial rights from one party to another |
|
|
Assured |
Party
indemnified against loss by means of insurance |
|
|
Arbitration |
Methods
of settling disputes which is usually binding on the parties concerned. |
|
|
Air
Pipe |
Fitted
to water ballast and oil tanks and led to the upper deck to allow the escape of air when
the tanks are being filled |
|
|
Amidships |
The
portion of the ship at half its length |
|
|
Approved |
An
"approved" vessel is one which the underwriters deem adequate to carry the
insured cargo, at the agreed rate of premium. |
|
|
Auxiliary
Boiler |
Used
for duties other than main propulsion but may still be very large boilers as found on
tankers when cargo discharge is done using cargo pumps driven by steam turbines. |
|
|
Average |
A
marine partial loss. |
|
|
Avoidance |
The
right of an underwriter, in the event of a breach of good faith or delay in commencement
of an insured voyage, to step aside from the insurance contract and to treat it as though
he never accepted the risk |
|
|
B |
|
|
|
Ballast |
Any
solid or liquid weight placed in a ship to increase the draught, to change the trim or to
regulate the stability |
|
|
Ballast
Tank |
A
watertight compartment to hold water to improve the ship's stability |
|
|
Bank
Guarantee |
An
undertaking given by a bank to pay a claim sometime in the future should the Member be
found liable and the undertaking is provided by the bank for the Association. |
|
|
Barge |
A flat
bottomed vessel for carrying cargo. |
|
|
Batten |
To
batten down is to secure the hatchway tarpaulin |
|
|
Beam |
Fitted
in the fore part of a ship to prevent vibration |
|
|
Berth |
Where a
ship is tied up or docked, a place to sleep aboard |
|
|
Bilge |
Curved
portion between the bottom and the side shell plating, drainage space within the ship |
|
|
Bill
Of Lading |
A
receipt for the cargo received into the care of the carrier must be issued to the shipper
by the carrier.
1. Evidence of the
contract of carriage
2. Title to the goods
3. Receipt for the goods
|
|
|
Bollard |
Fitted
for the purpose of securing ropes |
|
|
Bona
Fide |
In good
faith, without fraud or deceit |
|
|
Bowthruster |
An
additional motor driven propulsion unit to provide transverse movement. |
|
|
Broker |
A
person who transacts the business of negotiating between merchants and shipowners
respecting cargoes and clearances, or one who effects insurances with underwriters |
|
|
Bulbous
Bow |
A ship
which has a bulbous profile which improves the speed and efficiency/characteristics of the
vessel. |
|
|
Bulkhead |
A
crosswise/longitudinal division of a ship |
|
|
BULWARK |
The
plating fitted for protection at the sides of a ship on and above the weather deck |
|
|
BUNKER |
Ship's
fuel |
C |
|
|
|
Call |
The
premium charged by a P & I Club |
|
|
Cargo
Interests |
Parties
having an interest in the cargo. |
|
|
Carrier |
Operator
or charterer of a ship, usually a shipowner |
|
|
Centrifugal
Separators |
Used on
ships to treat fuels and lubricating oils. They spin at very high speeds, typically 6000
rpm and separate out water and solids. |
|
|
Certificate
Of Entry |
A
document issued by the Association which records the names of Members interested in, and
is evidence of a contract of insurance in respect of, an entered ship. |
|
|
Cesser |
When a
term comes to an end. |
|
|
Charterer |
Person
who hires a vessel either on a voyage or for a period of time. |
|
|
Charterparty |
A
contract between a shipowner and a party who hires his ship for an agreed period of time,
or for a specific voyage or a series of voyages |
|
|
Classification
Society |
Bodies
approved by governments to ensure the practical enforcement of statute for the safety of
life at sea |
|
|
Cleat |
A
fitting having two horns around which ropes may be tied, a clip on the frames to hold the
cargo battens in place |
|
|
Coinsurance |
Where
two or more parties share the same insured risk. |
|
|
Collision |
Physical
impact between two or more ships or vessels used for navigation. |
|
|
Compressor |
A means
of producing air. |
|
|
Constructive
Total Loss |
Where
the assured abandons the subject matter insured to the underwriter and claims a total
loss. |
|
|
Contract
Of Affreightment |
Contract
for the carriage of goods by sea in return for payment |
|
|
Cool
Down Survey |
The
process by which the refrigeration equipment is checked to be operating within its
designed parameters. It is used to identify the possible existence of insulation
deficiencies. |
|
|
Correspondent |
Representatives
of the Association who are based in all major and minor ports throughout the world.
Correspondents can be maritime lawyers, ship's agents or in some cases surveyors. |
|
|
Coaming |
The
vertical plating bounding a hatchway |
|
|
Cofferdam |
Narrow
space between two bulkheads or floors that prevents leakage between adjoining compartments |
D |
|
|
|
Davits |
The
supports under which the lifeboats are stowed and from which they are launched overboard |
|
|
Deadweight |
The
difference in displacement between the light and load waterlines |
|
|
Deck
Log |
A book
where records of the vessel's navigational progress and daily events are kept. |
|
|
Deductible |
Sometimes
called an excess is the amount the Member agrees to pay or is required to pay
in respect of a particular claim. |
|
|
Demurrage |
Charge
made by shipowner or wharf owner for delay in unloading or loading |
|
|
Demise
Charter Party |
A
charter party under which the shipowner provides vessel, and charterer crew and cargo. |
|
|
Derrick |
A wood
spar or steel tube used for discharging or loading cargo |
|
|
Disclosure |
The
duty of the assured and his broker to tell the underwriter every material circumstances
before acceptance of the risk |
|
|
Disbursments |
Payments
incurred for a variety of port expenses embracing fresh water, bunkers, customs fees etc. |
|
|
Displacements |
The
weight of water displaced by the ship |
|
|
Dolphin |
A
mooring buoy or a block of wood with a ring bolt at each end for vessels to ride buy |
|
|
Draught |
The
depth of water at which the ship floats |
|
|
Dunnage |
Battens
fitted in the hold for the protection of cargo |
E |
|
|
|
Entered
Ship |
A ship
which has been entered for insurance in any Class of the Association. |
|
|
Estimated
Total Call (ETC) |
The
approximate level of premium which the Members will be advised how much to budget for the
coming year. |
F |
|
|
|
Facultative |
The
right of option. The right of an underwriter to decide whether or not to accept a risk. |
|
|
Fathom |
A unit
of measurement |
|
|
Fenders |
Rubbing
pieces fitted on the sides of a ship as a means of protection |
|
|
Forecastle |
The
superstructure on the upper deck at the fore end of a ship |
|
|
Fore
Peak |
The
watertight compartment at the extreme foreward end. |
|
|
Freight |
The
hire of a ship, the carriage of cargo, cargo |
G |
|
|
|
Gangway |
A
ladder used for boarding a ship |
|
|
General
Average |
An
extraordinary sacrifice or expenditure is intentionally and reasonably made or incurred
for the common safety for the purpose of preserving from peril the property involved in a
common adventure. |
|
|
Good
Faith |
A basic
principle of insurance. The assured and his broker must disclose and truly represent every
material circumstance to the underwriter before acceptance of the risk. A breach of good
faith entitles the underwriter to avoid the contract. |
H |
|
|
|
Hague
Rules |
Throughout
the latter half of the 19th Century there was increasing dissatisfaction amongst cargo
owners and their insurers with the law governing a carrier's liabilities for damage to
goods in their custody. This was due to an increasing number of protection and other
limitation clauses. There was a growing demand to establish a uniform code or rules for
the carriage of goods by sea. After many years a conference was held at Brussels which
resulted in a set of Rules known as the Hague Rules. The aim of the Rules was to establish
a uniform code for the carriage of cargo shipped under Bills of Lading. |
|
|
Hague
Visby Rules |
In 1968
the Hague Rules were revised and amended in order to bring them into line with the needs
of a modern shipping industry. The amended Rules are known as the Hague Visby Rules. |
|
|
Hamburg
Rules |
A
further convention on the Carriage of Goods By Sea was held in Hamburg and the provisions
agreed at this convention are known as the Hamburg Rules. The Hamburg Rules make the
presumption that the carrier is responsible for any loss or damage unless it is proved
that the carrier took all measures that could reasonable be required to avoid the
occurrence. |
|
|
Hatch
Cover |
Steel,
wood or canvas covers for the openings to cargo compartments |
|
|
Held
Covered |
A
provisional acceptance of risk, subject to confirmation at a later date that the agreed
cover is needed. Where applicable to an existing insurance, cover is conditional, in
practice, on prompt advice to the underwriter as soon as the assured is aware of the
circumstances to be held covered coming into effect. |
|
|
Holds |
Spaces
below deck for stowage of cargo |
|
|
Hose
Test |
The
testing of hatch covers' weather tight integrity through the application of a jet of water
(minimum 5 bar) to the hatch joints. |
|
|
Hull |
A
ship's chassis/base frame |
I |
|
|
|
Indemnity |
Security
against damage or loss, exemption from penalties, compensation for damage |
|
|
Inherent
Vice |
A
defect or inherent quality of the goods or their packing which of itself may contribute to
their deterioration, injury, wastage or final destruction without any negligence. |
|
|
Insurable
Intrest |
It is
illegal for anyone to insure without an insurable interest or, in the case of marine
insurance, a reasonable expectation of acquiring such interest. In general one has such
interest when his relationship to the property at risk may expose him to loss or liability
or where he stands to gain by the safety of such property. |
J |
|
|
|
Jurisdiction |
Administration
of justice |
K |
|
|
|
L |
|
|
|
Lagging |
Material
used for insulation |
|
|
Laid
Up Returns |
P &
I insurance premium or call which is received although a vessel is laid up during a policy
year and is no longer trading. |
|
|
Letter
Of Protest |
A
declaration by the Master holding another party responsible for some loss or damage that
has already occurred or is likely to occur to the ship or cargo. |
|
|
Liable/Liability |
Legally
bound, subject to, exposed to, answerable for/being liable for, |
|
|
Lien |
Retention
of property until outstanding debit is discharged |
|
|
Line |
The
amount or percentage in a broker's slip or policy which establishes the extent of the
underwriter's liability. The written line is written by the underwriter on the slip when
he accepts the risk. |
|
|
Lighter |
An open
non-propelled barge |
|
|
Liner |
A
merchant ship engaged on a scheduled direct regular service |
|
|
List |
Inclination
of ship from the upright position |
|
|
Log
Book |
An
official book containing the records of the voyage inserted by the Master of the ship |
M |
|
|
|
Main
Boiler |
Typically
water tube boilers where the steam and water drums are interconnected with tubes which
carry the water. |
|
|
Manhole |
A hole
in the tank top to provide access |
|
|
Manifest |
Inventory/list
of cargo shipped |
|
|
Master |
A
person in sole charge of a ship |
|
|
Mate's
Receipt |
An
important document used in preparing Bills of Lading. It is a receipt, given and signed by
the Mate, for goods actually received on board the ship. It must provide a description of
the cargo, including the quantity, distinguishing marks, grade and any other relevant
information. |
|
|
Member |
A
shipowner/charterer/time charterer or a person who hire ships for a specific voyage who
has entered his vessels with the Association for insurance cover. |
|
|
Midships |
Middle
of the ship's length |
|
|
Misrepresentation |
A
mis-statement of fact made by the assured or his broker to the undewriter, before
acceptance of the risk, which misleads the undewriter in assessing the risk. |
|
|
Mutual
Insurance |
The
sharing of liabilities on a non profit basis |
N |
|
|
|
No
Cure No Pay |
Salvage
provision whereby no award is paid to a salvor if he is unsuccessful. |
O |
|
|
|
Overspill
Call |
If a
claim exceeds the Club's retention, the Pool's retention and excess loss reinsurance an
overspill call will be required. |
|
|
Owner |
A
person who owns a ship (shortened version of shipowner) |
P |
|
|
|
Pilotage |
A
charge raised on a vessel entering a river/port/estuary/canal where the services of a
pilot are obligatory |
|
|
Peak
Tanks |
The
compartments at the extreme ends of the ship which are normally used as ballast tanks |
|
|
Peril |
A term
used in the Marine Insurance Act (1906) to denote a hazard. |
|
|
Pilot |
A
person who aids the Master in ship navigation, usually in confined waters. |
|
|
Policy
Year |
Time
period of insurance |
|
|
Pooling
Agreement |
Means
or method whereby claims are paid by various contributions from P & I Clubs
collectively known as the London Group or International Group. A sharing arrangement. |
|
|
Port |
Left
hand side of the vessel when looking forward |
|
|
Premium |
Monies
paid to the Association in respect of the entered ship |
|
|
Prima
Facie |
At
first glance |
|
|
Privity |
Knowledge
actual or constructive |
|
|
|
|
Propeller |
A
revolving screw-like device that drives the ship through the water |
|
|
Pump |
A means
of transporting liquids or gases from one area to another. |
Q |
|
|
|
R |
|
|
|
Ratify/Ratification |
To
confirm or accept by signature or other formality |
|
|
Recovery |
Amount
recovered from a third party responsible for a loss on which a claim has been paid. |
|
|
Release
Call |
Upon
the cesser of insurance in respect of an Entered Ship for any reason, or at any time
thereafter the Managers may at their sole discretion demand an amount to release the
Member from liability for further contributions to Calls in respect of such ship. |
|
|
Reserve |
When
claims cannot be met out of the call income or reinsurance then there are always reserves.
It is not however a policy of P & I Clubs to hold on to their Members' money
unnecessarily and therefore reserves are maintained at an optimum level. |
|
|
Reinsurance |
The
procedure whereby an insurance company or P & I Club passes on all or part of the risk
to another insurance company or P & I Club. |
|
|
Rider
Clause |
The
addition of type-written clauses to the standard Charter Party. These clauses can
significantly alter the owner's responsibility for cargo claims. |
|
|
Ro-Ro/Roll
On/Roll Off |
Ships
capable of shipping vehicular traffic via a ramp |
|
|
Rules |
Comprise
of P & I cover/H & M Cover/FD & D Cover afforded to the Members subject to the
terms of entry. |
|
|
Running
Down Clause |
The
collision liability clause which appears in a policy covering the hull and machinery of a
ship. |
|
|
Running
Down Clause/RDC Cover |
Sometimes
all or part of the third party liability cover for damage caused to other vessels through
collision is included in a special clause in the Hull and Machinery insurance. This is
normally the only third party cover provided within the traditional Hull and Machinery
police. |
S |
|
|
|
Salvage |
Process
of recovering a ship or cargo from a loss or damage due to maritime perils. |
|
|
Salvor |
The
person claiming and receiving salvage for having saved a vessel and cargo or any part
thereof from impending peril or recovered after actual loss. |
|
|
Security/
Guarantee |
A
promise by the Association to make payment to the receiver of the guarantee should the
Member be held liable for a claim. |
|
|
Shell
Plating |
The
plates forming the outer side of the hull |
|
|
Shipper |
A
person wishing to send his goods by sea |
|
|
Skylight |
A
framework over accommodation or engine with glass inserted to admit light and air to the
space below |
|
|
Sounding
Pipe |
A pipe
led from the upper deck to the bottom of a tank which is used to ascertain the depth of
water or liquid therein |
|
|
Stanchion |
Vertical
column supporting decks or girders, also called a pillar |
|
|
Supernumerary |
A
person carried on board but is not signed on as crew. |
|
|
Starboard |
The
right hand side of a ship when looking forward |
|
|
Steering
Gear |
The
gear which turns the rudder and thus steers the vessel. |
|
|
Stern |
The
aftermost end of a ship |
|
|
Stevedore |
Docker
engaged on cargo/baggage shipment |
|
|
Stow |
To put
away, to stow cargo in a hold |
|
|
Strikes
Insurance |
Insurance
which reimburses the shipowner for his daily operating costs when his vessel is
strike-bound as a result of either shore labour or crew disputes. |
|
|
Subrogation |
The
right of the underwriter to step into the shoes of the assured following payment of a
claim to recover the payment from another party who was responsible for the loss. Limited
to the amount paid on the policy. |
|
|
Suit |
Legal
proceedings |
T |
|
|
|
Tailshaft |
The
aftermost length of shaft to which the propeller is attached |
|
|
Tally |
The
process of checking, or taking account of the goods placed into a ship or unloaded from a
ship. |
|
|
Tanker |
A
steamer or motor vessel in which oils or molasses are transported in bulk |
|
|
Tarpaulin |
Waterproof
canvas cover secured over non-watertight hatch covers. |
|
|
Time
Bar |
Expiry
of suit time |
|
|
Tort |
An
injury or wrong independent of the contract as by assault, malicious prosecution,
negligence, slander or trespass |
|
|
Tovalop |
A
voluntary agreement but legally binding between tanker owners which provides compensation
to third parties for pollution damage and clean-up costs. |
Tramp
|
A
merchant ship not confined to definite ports, but sails when cargo is available to and
from any port |
|
|
Transhipment |
Process
of transferring cargo, usually from one ship to another |
|
|
Trim |
The
difference in draught forward and aft |
|
|
Turbocharger |
A
performance enhancing device fitted to engines which use exhaust gases to drive gas
turbines which force clean, cool air into the engine allowing increased power output from
an engine. |
|
|
Tween
Decks |
The
space between two adjacent decks |
U |
|
|
|
Ullage |
The
vertical distance between the surface of the liquid and the top or crown of the tank. |
|
|
Underwriter |
Has
responsibility for negotiating each Member's calls required by the Club and the terms of
entry to apply to new or additional vessels as well as any other changes that a Member
might require. He is also heavily involved in marketing and development. |
|
|
Utmost
Good Faith |
Mutual
trust in negotiating an insurance contract. A breach of good faith by one party entitles
the other to avoid the contract. |
V |
|
|
|
Venture |
Term
embracing the three elements of any commercial voyage - hull, cargo and freight/passengers |
W |
|
|
|
Warranty |
An
undertaking by the assured whereby he promises to comply with the terms of the warranty.
Non-compliance consitutes breach of warranty and the underwriter is discharged from
liability as from the date of the breach. |
|
|
Wash
Damage |
Created
when a ship's speed is excessive in narrow and confined waters. Wash created erodes the
banks and damages property on the banks. |
|
|
Waybill |
List of
passengers or inventory of cargo shipped |
|
|
Winches |
Machinery
with which a vessel can operate its mooring ropes and cargo wires which are drum driven by
many means to tension/slack mooring ropes and wires. |
|
|
Windlass |
The
machine used for raising the anchor and chain cable |
|
|
Without
Prejudice |
Leaving
the question open. |
|
|