Abandonment:
The act of surrendering the insured vessel or goods to the insurer when a loss is total or constructive total.
Actual Total Loss (ATL):
A situation where the subject matter insured is completely destroyed or so damaged that it is no longer useful.
Average:
A partial loss or damage to the insured goods or vessel. It is further classified into:
General Average: A loss shared proportionately by all parties in a voyage when sacrifices are made for the safety of the vessel.
Particular Average: A loss borne solely by the party whose cargo was damaged.
Barratry: Fraudulent acts committed by the ship’s master or crew that are against the owner’s interests (e.g., theft, smuggling).
Bill of Lading:
A document issued by a carrier to acknowledge receipt of cargo for shipment. It serves as a receipt, contract, and title of the goods.
Charter Party:
A contract between a shipowner and a charterer for the hire of a ship or its cargo space.
Constructive Total Loss (CTL):
A situation where the cost of repairing or recovering the vessel or goods exceeds their insured value.
Jettison:
The deliberate act of throwing cargo overboard to lighten the vessel during an emergency.
Open Policy:
A policy that covers all shipments made by the insured during the policy period, providing automatic coverage.
Particular Charges:
Expenses incurred by the insured to minimize a loss, recover goods, or repair damages.
P&I Insurance (Protection and Indemnity):
A mutual insurance covering third-party liabilities, such as damage to cargo, injury to crew, or environmental pollution.
Subrogation:
The right of the insurer to recover the amount paid to the insured by pursuing third-party claims.
Sue and Labour Clause:
A clause requiring the insured to take reasonable steps to prevent or minimize loss or damage to the insured property.
