Glossary

Abandonment		Method of settlement of loss through which the Insured assigns to his Insurer all his rights of ownership to the goods or whatever remains of them, in consideration of payment of the indemnity under the policy in case of total loss.
Abondment Clause		Clauses often contained in an insurance policy stating that the insured cannot abandon damaged property and then file a claim with an insurer.
Acconier		Specific word used in the mediterranean ports for naming a stevedore .The acconier  is also involved in juridical matters as well as  material manutentions
Accumulation Period		A specific time period that the insured must establish before benefits begin or are paid out.
Act of God		Unforeseeable, AND UNEXPECTED unavoidable act outside of that which can be controlled.
Additional Carrier Information		Carrier information indicated on a certificate of insurance that would prove useful to the insured for reference (e.g. voyage number, bill of lading number, etc.)
Additional Insured		An individual or entity that is not included as an insured under the insurance policy of another party, but may be added to provide a certain degree of insurance protection.
Admitted Company		An insurance company that is licensed (admitted) to conduct business within a given country or state.
Advance Premium		Relates to a policy whose premium cannot be precisely determined until the end of the term. The advance premium, also called "deposit premium", is a down payment on what will be the final premium.
Ad Valorem Bill of Lading		Same as Valued Bill of Lading or Declared Value Bill of Lading.
Air Handling  Agent		Enterprise which provides services to transporters who have no facilities available to them at the airports they use.  These paid services can also involve customs or commercial duties.
Affreightment		A contract which sets forth the obligations of both shipper and carrier concerning transportation of the merchandise. The most common forms of affreightment are Bills of Lading and Waybills.
Aggregate Deductible		A deductible in some insurance contracts in which all covered losses during a year are figured together and an insurer pays only when the aggregate deductible amount is exceeded
All Other Perils and Misfortunes		Phrase in Cargo policy meaning perils of the same nature as those described  specifically in the Perils clause
All Risks		A broad form of coverage, providing protection against all risks of physical loss or damage from any external cause. It does not embrace loss or damage due to delay, wear and tear, inherent vice, pre-shipment conditions, inadequate packaging, or loss of market.
All Risks Policy		Coverage through an insurance contract that promises to cover all losses except those losses specifically excluded in the policy.
Annual Premium		A annual premium is paid and this is adjusted at the end of the year based upon declarations made.
Approved or H/C		An "approved" vessel is one, which the underwriters deem adequate to carry the insured cargo, at the agreed rate of premium. Where the vessel is not approved, the risk is still covered but subject to a reasonable additional premium.
Arbitrating survey		Survey carried out by one or more experts chosen and approved by all involved parties.
Assailing Thieves		Forcible taking of property but not sneak thievery.
ATA Carnets		Documents produced for customs .These documents are produced for goods that are travelling from a country ,which are due to return.They enable goods to enter a country without duty being payable since the goods are due to leave again.
Average agent		Expert sent by the insurers to assess  the damages sustained to goods and ascertain cause of loss.
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 clause		This allows the insured to recover part of the damages when the underwritten insurance is insufficient through the report of the value of transported goods ie when the goods are underinsured this making the insured responsible for a pro-rata proportion of.
Barratry		Deliberate acts committed by the captain and crew of a ship, to the detriment of the owner and loaders
Batch / Consolidation list		Document listing all the goods sent in a single shipment.
Bill of Lading		This document for river or marine transportation has three principal functions : - Serves as proof of receipt of goods it describes; - Serves as proof of the transportation contract; - Serves as representative title for goods
Binder		A written contract issued to place insurance. (Generally authorising a broker to effect insurance on the Insuers behalf.)
Bonded Shipments		Shipments on which duty is payable, but which are permitted to travel to inland destinations before customs inspection is made and duty is actually paid
Bottom Limit		The maximum value at risk per shipment/sending/aircraft.
Brown Goods		A term describing consumer electrical goods e.g. Hi-fis, Televisions.
Brussels Convention or Rules of The Hague		International convention for the unification of certain rules relating to bills of lading. Signed in Brussels August 25, 1924. A Protocol (Rules of Visby) was signed February 23, 1968.
Cancellation; Flat Pro Rata or Short Rate,		Flat cancellation means the premium is returned to the insured. A pro rata cancellation means the insurer has charged for the time the coverage was in force. Short rate cancellation entails a penalty in excess of pro rata for early termination.
Carriage of Goods by Sea Act (Cogsa)		International agreement defining the responsibilities and liabilities of an ocean carrier transporting cargo.
Case of Exoneration		The transporter is responsible from loading to delivery for losses and damages sustained by goods, unless he can prove that these losses or damages stem from exceptional circumstances, exonerating him from responsibility.
Catastrophe		An event in which loss is of extraordinary magnitude, such as a hurricane or tornado.
Charter-Party		Maritime charter contract, it records the obligations of the involved parties.  There are many different types (Baltime, Gencon, Synacomex...)
C C R		Public commercial establishment created in 1946 and transformed into the Société Anonyme in 1993.  The CCR carries out all types of reinsurance operations, some of which benefit from guarantees by the French State (risks of natural disasters, risks of war
Chartering		Contract through which the ship charterer (owner - proprietor) makes his ship available to a freighter (LESSEE) for a journey or a predetermined time period, in exchange for payment of price of transport.
Civil Commotion		One of the EXTENDED COVERAGE perils, associated with RIOT and referring to a less widespread or generalized event than "riot" might be thought to encompass.
CMR		International convention relating to road transportation of goods, signed in Geneva on May 19, 1956 and put into effect on July 2, 1961.
Co-insurance		Division of the risks covered by an insurance policy among several insurers
Collect Freight		Freight which is payable to the carrier when the merchandise arrives at the port of discharge named in the bill of lading.
Combined Ratio		A measure of the dollars spent for claims and expenses and premium dollars taken in.
Common Carrier		Any ship owner or other carrier who offers vessels or other modes of transportation to the public for the purpose of transporting merchandise.
Consequential Loss		A financial loss occurring as the result loss damage or non-delivery of the interest insured.
Consignee		Individual or company to whom cargo is shipped or consigned.
Contingency Insurance (Sellers risk)		A secondary insurance coverage that will protect an insured's financial interest if the primary insurance coverage effected by others does not respond for a covered loss.
Contribution		This relates to situations where more than one party covers the risk. Each party is deemed to be liable for its portion of the loss.
Counter Signature		An authorized signature (of agent or company representative) on an insurance policy.
Country Damage		Damage caused by dirt, mud, etc., to commodities before they are shipped.
Cover Note		A non-negotiable document evidencing insurance that may or may not indicate the terms of coverage.
Criminal negligence		Reckless act carried out without valid reason despite the awareness that damage would probably result.
CTL		Constructive Total Loss
Deadweight  Capacity   (Dwt)		Difference between the light displacement and the loaded displacement of the ship.  Light displacement or light weight is the weight of the ship in commission but empty (no fuel, no goods...).  Units are in metric tonnes.
Debris Removal Clause		A consequential coverage commonly included in DIRECT LOSS policies. For example, fire policies provide limited recovery for the insured's cost of removing the debris after a covered fire. Not to be confused with REMOVAL.
Declaration		Form filled out by assured and sent to the insurance company when reporting   individual shipments coming within the terms of an Open policy.
Deductible		A specified amount, or percentage of the insured value, which will be deducted from all losses recoverable under a policy.
Delivery Ticket		Document serving as proof that goods were loaded.  It is signed by the road transporter at the request of the shipper.
Demurrage		Contractual penalty anticipated by the Charter-Party when the charterer exceeds his time limits and immobilises the ship for longer than expected.  Holidays and holiday evenings count according to the adage ""Once on demurrage, always in demurrage"
Deviation		A vessel's going to some other point or taking some course other than that  described in the Bill of Lading.
Difference in conditions		Intervention of a complementary policy when the conditions of the base policy are insufficient or not adapted to local regulation
Documentary Credit		Contract by which a bank, in accordance with the instructions of the buyer, agrees to pay the seller the price of goods upon presentation of certain documents
Endorsement		Document completing or modifying the insurance contract.
Exhibition Cover		A Marine Cargo Policy normally provides cover while merchandise is in transit. However, an Exhibition Cover extends coverage to include the merchandise while it is on exhibit (usually at a trade show) and the return shipment (unless the merchandise is sold).
FCL		Full container load
Fitting out		Group of equipment and personnel needed to navigate a ship.
FPAAC (Free of Particular Average, American Conditions):		Average clause that limits recovery of partial losses under the Perils clause  to those losses directly resulting from fire, stranding, sinking, or collision  of the vessel.
FPAEC(Free of Particular Average, English Conditions):		Same as FPAAC except that partial losses under the Perils clause are fully  recover-able if the vessel has been stranded, sunk, burned, been on fire, or  in collision, without requiring that the damage actually be caused by one of  these perils.
Forwarding          Agent		Haulage contractor who freely organises the operation and settles the necessary contracts in his name, for the account of his client shipper (the principal).
Francise		Similar to a deductible, but if the recoverable loss equals or exceeds the franchised amount the loss is paid in full.
Free of capture and Seizure (F.C & S)		An insurance clause providing that loss is not insured if due to capture, seizure, confiscation and like actions, whether legal or not, or from such acts as piracy, civil war, rebellion and civil strife.
Free of Particular Average (F.P.A)		Sometimes referred to as "C Clauses." This is a restricted form of insurance that covers the goods against total loss by Marine perils. Partial losses are recoverable only if the vessel has stranded, sunk or burnt or the loss has been caused by fire, collision, contact of the conveyance or by discharge of the cargo at a port of distress. American F.P.A. clauses are narrower in their cover.
Freight Charge		Price agreed upon for the transportation of goods, or, by extension, for the cargo itself
Fronting		Accepting  liability for a direct insurance with the intention of re-insuring the whole risk at the original net rate, usually less an overriding commission
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.
Grounding		The term of grounding usually implies a less dangerous position of a vessel than  that of stranding .A vessel is said to be grounded when during moderate weather she is run on a bank or shoal.Also when resting upon the bottom of a river or harbour for want of water
Harmonised System		A system of classifying products for trade purposes developed by the Customs Cooperation Council (CCC) in Brussels and its 150 member countries. Individual countries use their own national classifications but the first 6 digits are standard (or harmonised) across all countries using the system. The first countries introduced the system in 1988 and it is now used by over 50 countries (including TradStat reporting countries.)
Held Covered		A provisional acceptance of risk, subject to confirmation that cover is needed at a later date. Where applicable to an existing insurance, coverage is conditional. In practice, on prompt advice to the underwriter as soon as the insured is aware of the circumstances to be held covered coming into effect, and a reasonable additional premium is payable if the risk covered comes into effect, the insured is covered.
Hold Harmless Agreement		A contractual assumption by one party of the liability exposure of another. Lease agreements, for example, commonly require the tenant to hold the landlord harmless for bodily injury or property damage experienced by others on the premises.
Hidden Damages		Damages that are not suspected or evident on external examination of the contents, which are only discovered when goods are unpacked.
Hurricane		A tropical storm marked by extremely low pressure and circular winds with a velocity of 75 miles an hour or more.
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.
Incoterms		Series of facultative international regulations standardizing the terms used in foreign contracts of sale
Inherent Vice		Damage originating from the nature of the insured cargo, regardless of any external factor.
Insurance Agent		Representative of one or many insurance companies.
Insurance Broker		The broker is an insurance professional, often specialising in a certain branch, who is an agent of the insured.  He generally receives a commission, or a fee.
Insurance certificate		Negotiable document certifying that the goods it represents are insured.  It supplies details about the insured values and the conditions of coverage.  The certificate can be to a named person, to an order, or to the holder
Invoice		Document which shows the terms of sale; contains full description of goods,  sale price, charges, discounts, etc.
Freight forwarder (transitaire)		Intermediate similar to an agent, charged with coordinating various methods of transportation according to the instructions which he has been given.
Jettison		Voluntary act by the captain of casting off some of the content of the ship, in order to save the ship and most of the cargo during an occurrence.
Judiciary appraisement		Survey carried out by one or more experts named by the president of the commerce court or of the magistrate's court at the request of one of the parties on the transportation contract.
Lay-Days		Contractually anticipated period during which the shipowner puts his ship at the disposal of the charterer for loading or unloading.
LCL		Less than container load
Leading Insurer or Leading Company		First signatory on an insurance policy, when there are several coinsurers.  The terms and conditions of the policy are discussed with the Leading Company.
Leakage		Loss in quantity or weight of certain liquids, due to their inherent nature.
Limitation / Time Bar		Delay after which it is no longer possible to institute judicial proceeding to recover losses
Liner Terms		They determine the division of responsibility between the loader and the shipowner in the marine transportation by liner contract, most often referring to the use of ports and marine lines.
LOSS (LEAKAGE) in transit		Loss in quantity or weight of certain goods, due to their inherent nature.
L T A		Transportation document established by the shipper, serving as proof of the contract with the aerial transporter.
Manifest		Summary state of bills of lading kept by the captain, which allow the indexing of cargo on board.
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.
Market value		Value of goods on the day of claim, according to the market prices.
Masters Protest		Sworn statement by captain describing any unusual happening during the voyage.
Notification of damages		Circumstantial written protests notifying an anomaly of the delivered goods. The notifications are made : - by the recepient in cases of damages or missing goods -by the transporter when he has reason to suspect the veracity of the loader's declaration
Occurrence		Any circumstance causing or having caused damage to the means of transportation or to the goods.
Particular Average		Damages, like deterioration or missing goods, which only affect a single interest, unlike common damages.
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).
Private Transportation		Road transport carried out by the insured for the needs of his activity, without having recourse to a public transportation company and without him having the status of public transporter. He uses his own vehicle or hired one.
		The effective cause of loss or damage; an unbroken chain of events between the occurrence and damage.
Public Transportation		Transportation carried out by a business having no economic or judicial connections to the goods.
Recovery		The amount recovered from a third party responsible for a loss on which a claim has been paid.
Renewal		A continuance of insurance under a policy beyond its original term by the insurer's acceptance of the premium for a new policy term.
Return Insurance		A seller or a buyer can have the underwriting of transportation insurance by a foreign insurer imposed on him by the co-contracting party.
Risk		Uncertain event, whose occurrence causes the guarantees explained in the insurance policy to be put into effect.
Sacrifice		The deliberate casting away or destruction of property to prevent greater loss. General Average sacrifice is for the common good and saved interests make good the sacrifice in proportion to the saving enjoyed.
Salvage		The recovery made by an insurance company by the sale of property that has been taken over from the insured as a part of loss settlement.
Salvage Charges		The reward payable to salvors for saving life and property at sea
Seaworthiness		There is an implied warranty in every voyage policy that the ship must be seaworthy at the commencement of the insured voyage or, if the voyage is carried out in stages, at the commencement of each stage of the voyage. To be seaworthy, the ship must be reasonably fit in all respects to encounter the ordinary perils of the contemplated voyage, properly crewed, fuelled and provisioned, and with all its equipment in proper working order. Cargo policies waive breach of the warranty except where the insured or their servants are privy to the unseaworthiness. Breach of the warranty is not excused in a hull voyage policy, literal compliance therewith being required.
Seaworthiness Warrenty		Although there is no warranty of seaworthiness in a hull time policy, claims arising from unseaworthiness may be prejudiced if the ship sails in an unseaworthy condition with the knowledge of the insured.
Self Insurance		An insurance-like strategy for handling one's own exposures to loss supported by the financial wherewithal to meet expected losses. Not to be confused with a decision to forego insurance.
Self Insured Retention		That portion of pure risk an insured undertakes to handle on his or her own. A deductible is a form of self-insured retention.
Settlement		A policy benefit of claim payment.
Shipment Date		The date on which a shipment begins.
Shipper		Sender mentioned on the bill of lading. This term also serves to describe transporters' clients, for transportation on land, by sea or in air.
Standard Contract		Contract applying with full rights in absence of a written convention between the parties, if a provision in the legislation in force exists
Stranding		Accidental engagement of the keel on a sandy or rocky bottom which causes the ship to stop, COULD BE DELIBERATE IN ORDER TO AVOID SINKING FOR INSTANCE
Strikes Cover		Limited to damage caused to insured property by strikers, locked-out workers and persons involved in a labor dispute. It does not include loss or expense incurred as a result of strikes.
Subrogation		The right of the underwriter to step into the shoes of the insured, following payment of a claim, to recover the payment from a third party responsible for the loss. Subrogation is limited to the amount of the claim.
Sue and Labour		A marine insurance clause comparable to REMOVAL in property insurance.
Sue and Labour Charges		Charges incurred by an insured in averting or diminishing a loss. They are recoverable in addition to the full sum insured.
Suspension		Temporary halt or annulment of guarantee
Term		The period of time a policy or bond is issued for.
Total Insured Value		The complete insured value of a shipment including duty, advance and freight charges.
Trader		International negotiater of large quantities of bulk goods.
Transhipment		Transfer of cargo from one ship, truck, or train to another ship, truck, or train.
Underwriting		The process of selecting risks for insurance and determining in what amounts and on what terms the insurance company will accept the risk.
User Value		Sale price with deduction for depreciation.
Utmost Good Faith		A basic principle of insurance. Mutual trust in negotiating an insurance contract. The insured and their 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 void the contract
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.
Warsaw Convention		International convention relating to air transportation.  It was signed in 1929 and completed by the Guadalajara Convention in 1961
Washing Overboard		Loss of a package into the sea, from shifting caused by shock from a wave or swell which submerges the structures of the ship.
Waybill		A bill of lading issued by a carrier showing the merchandise to be transported and shipping instructions. Airlines and truckers usually use it.
White Goods		A term describing consumer domestic electrical appliances e.g. fridge, washing machines.
Wilfull negligence		Act committed with the intent to cause damage.
Without Prejudice		Occasionally claims may be paid which the underwriter feels are not actually covered by the policy. Such payments are "without prejudice" and are not to be treated as a precedent for future similar claims. Also a term used to indicate that a report or opinion is objective and unbiased to any interested party involved.