Extended Operational and Trade Vocabulary

Marine Insurance, P&I and Hull Clauses glossary (page 2)

The hull-and-P&I clause vocabulary: abandonment and acceptance of abandonment, absolute liability under the CLC, accommodation lines, the Act of God exclusion, and the hull-clause and total-loss terms. Grounds each term in the policy clause or the liability regime it belongs to, complementing the broader insurance and claims section.

354 defined terms.

Showing 104 on this page (page 2 of 2).

N

North of England: The historical North of England Protecting and Indemnity Association, founded in 1860, which merged into NorthStandard in February 2023.
NorthStandard: An International Group P&I club formed in February 2023 by the merger of North of England Protecting and Indemnity Association and the Standard Club.
Norwegian Marine Insurance Plan 2013/2019/2023: See NMIP.
Notice of Abandonment (NOA): formal notice by the assured to underwriters claiming a constructive total loss.
Notice of Readiness (NOR): Notice by master that ship is ready to load or discharge, starting laytime.

O

Off-hire survey: Joint survey at redelivery.
Omnibus Clause: A clause extending cover to liabilities of a class not specifically enumerated, common in P&I rules through directors' discretion.
Onshore Risk: Risks of damage to cargo or property while ashore, relevant to the duration of cargo cover.
OPA 90: Oil Pollution Act 1990, US oil pollution liability statute.
Open Cover: contract under which underwriters agree to accept all cargo shipments meeting agreed criteria during a stated period.
Open Slip: The slip in the course of placement, before signing-down and final binding.
Outbreak of War: A peril triggering automatic termination of war risks cover under certain clauses, particularly for war between named major powers.
Outstanding Claims Reserve: see Loss Reserve.
Overage Vessel: A vessel older than a defined age, attracting age-related premium loadings or restrictions.
Overriding Clause: A clause stipulated to prevail over inconsistent provisions elsewhere in the policy.

P

P&I Club: Mutual insurance association covering protection-and-indemnity risks.
P&I Correspondent: A local agent appointed by a P&I club to assist members in a specific port or jurisdiction.
Package Limitation: limit per package or unit under Hague-Visby Rules article IV rule 5.
Particular Average: Partial loss falling on the owner of the property lost or damaged.
Particular Charges: expenses incurred by or for the assured for the safety or preservation of the subject matter, other than GA or salvage.
Passenger Liabilities: P&I cover responding to liabilities to passengers for death, injury, and property loss, subject to specific limits including those for cruise risks.
Payment in Full: The basis of certain claims settlements under hull policies, particularly for total losses on agreed value.
Peril of the Seas: A fortuitous accident or casualty of the sea, distinct from the ordinary action of wind and waves.
Personal Effects Insurance: Cover for personal effects of crew and passengers, often offered as an extension under cargo or P&I covers.
Piracy: Defined in UNCLOS Article 101.
Pollution Liability: The body of strict liability under CLC, the Bunker Convention, and national statutes such as OPA 1990.
Pollution Surcharge: An additional premium charged for transits in regions with elevated pollution liability exposure.
Pool Claim: A claim that exceeds the individual club's retention and is shared by International Group clubs under the Pooling Agreement.
Pool Retention: The amount each International Group club retains before claims become poolable, reset periodically by the Group.
Port Risks Insurance: Hull-style cover for vessels confined to a port or restricted waters, often used for laid-up or fitting-out tonnage.
Premium: consideration paid by the assured for the insurance.
Prestige: 2002 tanker breakup off Galicia, stern section closure operation completed 2017.
Proof of Loss: documents establishing the loss claimed.
Protection and Indemnity Insurance: see P&I.
Proximate Cause: The dominant or efficient cause of loss for the purpose of determining whether a loss falls within insured perils, codified at Section 55 of the Marine Insurance Act 1906.

Q

Quantum: The amount of a claim, distinguished from issues of liability.
Quota Share Reinsurance: A proportional reinsurance treaty under which the reinsurer takes an agreed percentage of each risk and corresponding premium.

R

Recoveries: Amounts received from third parties in respect of insured losses, credited to the underwriter under subrogation principles.
Reefer Cargo: Refrigerated cargo, often subject to specialized clauses addressing breakdown of refrigerating machinery.
Reinstatement Premium: premium payable to reinstate a reinsurance layer after a loss.
Reinsurance: insurance of insurance, by which insurers transfer part of accepted risk.
Release Call: A final call levied by a P&I club on a member ceasing entry, in lieu of further supplementary calls for past policy years.
Repairs Account: The account maintained for hull damage claims, supported by yard invoices, surveys, and average adjuster computations.
Replacement Clause: see Institute Replacement Clause 1/12/34.
Repudiation: Wrongful refusal to perform contract, triggering default remedies.
Retention: amount of risk retained net for own account before reinsurance responds.
Riot, Strikes and Civil Commotions (RSCC): The category of perils added to cargo cover by Institute Strikes Clauses.
Risk Code: The classification code identifying the type of marine risk for regulatory and market reporting.
Run-Off: The period after termination of underwriting during which existing claims continue to be administered.

S

Salvage: Recovery of a vessel or cargo from peril at sea.
Salvage Charges: charges recoverable under maritime law by the salvor, recoverable from underwriters under section 65 of the Marine Insurance Act 1906.
Sanchi: The Iranian-operated condensate tanker that collided with the CF Crystal in the East China Sea in January 2018 and sank, generating significant pollution and salvage claims.
SCOPIC Clause: Special Compensation P&I Clause incorporated into LOF.
Section 17 MIA 1906: The historic duty of utmost good faith provision in the Marine Insurance Act 1906, narrowed by the Insurance Act 2015 in its pre-contract aspect.
Section 39 MIA 1906: The implied warranty of seaworthiness in voyage policies under the Marine Insurance Act 1906.
Section 55 MIA 1906: The provision codifying proximate cause and listing certain default exclusions in the Marine Insurance Act 1906.
Sewol: South Korean ro-pax that capsized off Jindo on 16 April 2014 with 304 fatalities.
Ship Repairer's Liability Insurance: Cover for the liability of shipyards and repair yards for damage to vessels in their care.
Shipowners Mutual: The Shipowners' Mutual Protection and Indemnity Association (Luxembourg), an International Group P&I club focused on small and specialty tonnage.
Sister Ship Clause: Allows arrest of a sister ship to enforce maritime claims.
Skuld: Assuranceforeningen Skuld, a Norwegian-headquartered International Group P&I club founded in 1897.
Slip: Allow to run; berth for a small craft.
SOLAS: International Convention for the Safety of Life at Sea, 1974; the IMO treaty setting minimum construction, equipment, and operation standards for merchant ships.
Standard Club: The Standard Steamship Owners' Protection and Indemnity Association, founded in 1884, which merged with North of England in February 2023 to form NorthStandard.
Standard P&I Rules: The rules under which a P&I club provides cover, supplementing the certificate of entry.
Steamship Mutual: P&I club operating PEME scheme through approved clinics worldwide.
Stellar Daisy: The very large ore carrier converted from a tanker that sank in the South Atlantic in March 2017, prompting industry attention to converted VLOC structural risks.
Stowage: The arrangement of cargo on board, defective stowage being a frequent ground for cargo claims and a focus of pre-shipment surveys.
Strikes Risk: The risk of loss caused by strikers, locked-out workers, and persons acting in labor disturbances, covered under Institute Strikes Clauses.
Subrogation: Insurer's right to step into the insured's claim against third parties.
Sue and Labor: The provision under which the underwriter reimburses the assured for charges properly incurred to avert or minimize an insured loss.
Supplementary Call: additional contribution levied by a P&I club on members if standard calls are insufficient.
Survey Report: The written report of a marine surveyor recording observed damage, cause, and recommended remedial action.
Swedish Club: Sveriges Ångfartygs Assurans Förening, an International Group P&I club founded in 1872 and headquartered in Gothenburg, writing P&I, hull, and energy.

T

Tank Cleaning Clause: A clause addressing cargo claims arising from inadequate tank cleaning, particularly in oil and chemical trades.
Terrorism Cover: Cover responding to acts of terrorism, generally written within war risks programs in the marine market.
Time Bar: Limitation period (one year under Hague-Visby Article III Rule 6).
Time Policy: policy insuring for a defined period of time, as defined in section 25 of the Marine Insurance Act 1906.
Tonnage tax: Alternative tax regime based on ship tonnage rather than profits.
Total loss: Actual or constructive total loss for insurance purposes.
Total Loss Only (TLO): cover responding only to actual or constructive total loss.
Tower's Liability: Liability of a tug for damage to its tow, often covered by P&I or tower's liability extensions.
Trading Warranty: navigation warranty restricting the vessel's trading limits and forming the basis of breach trading warranty additional premium.
Treaty Reinsurance: reinsurance covering classes of business under a single contract.
TT Club: Through Transport Mutual Insurance Association, a mutual insurer for transport operators including terminals and freight forwarders, outside the IG.

U

Uberrimae Fidei: utmost good faith, the historic basis of section 17 of the Marine Insurance Act 1906; modified by the Insurance Act 2015 for non-consumer business.
UK P&I Club: United Kingdom Mutual Steam Ship Assurance Association, founded 1869, International Group member.
Unrepaired Damage: damage not repaired before sale or end of policy, recoverable in part under ITC Hulls 1/10/83 clause 18.
Unseaworthiness: The state of the vessel being unfit for the contemplated voyage, with insurance consequences depending on whether the policy is time or voyage and on the assured's privity.
Utmost Good Faith: See Uberrimae Fidei.

V

Valued Policy: policy specifying the agreed value of the subject matter insured, per section 27 of the Marine Insurance Act 1906.
Voyage Charterer's Liability: Cover for voyage charterers' liabilities under charterparties and to third parties.
Voyage Policy: policy from one place to another, as defined in section 25 of the Marine Insurance Act 1906.

W

War Cancellation Clause: A charterparty provision permitting cancellation on outbreak of war affecting trading.
War Risks Insurance: Cover for losses arising from war, civil war, revolution, rebellion, insurrection, capture, seizure, arrest, restraint, detainment, mines, torpedoes, and similar perils, customarily excluded from…
Warehouse-to-Warehouse Clause: predecessor to the Transit Clause, providing continuous cover from origin to destination warehouse.
Warranties: Promissory undertakings by the assured, the effect of breach having been reformed by the UK Insurance Act 2015 to suspend rather than terminate cover.
Wear and Tear: Ordinary deterioration through use, excluded from hull and cargo covers as not a fortuity.
West of England: The West of England Ship Owners Mutual Insurance Association (Luxembourg), an International Group P&I club founded in 1870.
Without Benefit of Salvage: A historical policy form rendered void by Section 4 of the Marine Insurance Act 1906 as constituting a wagering contract.
Without Prejudice: Privilege over settlement communications.
Wreck removal: Operations under Nairobi Convention.

X

X-Press Pearl: The container ship that caught fire and sank off Colombo, Sri Lanka in May and June 2021, generating one of the most significant container-related environmental incidents and large insurance and…

Y

York-Antwerp Rules: CMI-drafted rules for adjustment of general average; current editions 1994, 2004, 2016.