III IC-67 key terms

Insurance covering loss or damage to ships, cargo, freight, and related liabilities arising from maritime perils, governed by the Marine Insurance Act and related law.

A person's legal or equitable relationship to the subject matter such that loss or damage would cause them financial harm, making them eligible to insure it.

The duty on both parties, especially the assured, to disclose all material facts and avoid misrepresentation when arranging the insurance contract.

Any circumstance that would influence a prudent underwriter's judgment in deciding whether to accept a risk, or what premium or terms to apply.

Failure by the assured to reveal a material fact to the insurer, which may entitle the insurer to avoid the policy.

A false or misleading statement made to the insurer about a material matter during negotiations, whether innocent or deliberate, that may entitle the insurer to avoid the contract.

A fortuitous accident or casualty of the seas, such as heavy weather or waves, but excluding the ordinary action of wind and water.

A clause extending cover to losses from accidents in loading, discharging, or handling cargo, and from latent defects in machinery or hull, not caused by lack of due diligence.

A hidden flaw in machinery, hull, or equipment that is not discoverable by reasonable inspection and may trigger cover under an Inchmaree-type clause.

The reasonable care a shipowner or operator must exercise to make the vessel seaworthy and safe, often a condition for recoverable losses.

The condition of a vessel being reasonably fit in hull, equipment, crew, and stowage to encounter the ordinary perils of the intended voyage.

A state in which the vessel is not properly crewed, equipped, or fit to withstand the ordinary stresses of the voyage, often excluding certain claims.

The principle that insurance restores the assured to the financial position held before the loss, without allowing profit from the claim.

The insurer's right, after paying a claim, to step into the assured's shoes and pursue recovery from third parties responsible for the loss.

The assured's notice to the insurer surrendering all interest in the insured property when a constructive total loss occurs, enabling a total loss claim.

A loss where the insured subject matter is completely destroyed, irrecoverably lost, or so damaged it ceases to be the thing insured.

A loss where the subject matter is not totally destroyed but recovery or repair costs would exceed its insured value, permitting abandonment.

A partial loss accidentally suffered by a particular insured interest, such as damage to one cargo owner's goods, borne by that interest alone.

A maritime principle requiring all parties in a venture to share proportionately in sacrifices or expenses deliberately incurred to save ship and cargo from common peril.

An internationally adopted set of rules defining which losses and expenses qualify as general average and how contributions are apportioned.

The voluntary recovery of a ship or cargo from danger at sea, and the reward payable to salvors for saving maritime property.

A clause obliging or permitting the assured to take reasonable steps to avert or minimize a loss, with the insurer reimbursing those costs.

The assured's obligation to act reasonably to prevent or reduce a loss after an event, preserving the right to claim related costs.

A policy that fixes an agreed value on the subject matter at inception, which is treated as conclusive in measuring a total loss.

A policy that does not state an agreed value, leaving the insurable value to be proved by the assured when a loss occurs.

The actual value of the insured subject matter at the commencement of risk, used to measure indemnity under an unvalued policy.

The transfer of a marine policy to another party, which may occur before or after loss, subject to the terms and applicable law.

The specific property or interest covered by the policy, such as a hull, cargo, freight, or liability.

A policy insuring the physical vessel, its engines, and equipment against specified marine and related perils.

Cover protecting goods in transit against loss or damage from maritime and related perils from origin to destination.

Standard policy wordings, such as A, B, and C sets, defining the scope of cover, exclusions, and duration for insured cargo.

The broadest cargo cover, protecting against all accidental loss or damage except expressly excluded perils and inherent vice.

An internal quality of the goods that causes them to deteriorate or damage themselves, typically excluded from cargo cover.

A provision extending cargo cover from the time goods leave the consignor's warehouse until they reach the consignee's warehouse.

Mutual or commercial cover for shipowner liabilities, including third-party injury, cargo claims, pollution, and wreck removal.

Liability for damage caused by an insured vessel to another vessel, often covered under a running-down clause in hull policies and P&I cover.

An independent professional who apportions general average contributions and settles claims involving average and partial losses.

A policy term that must be exactly complied with; breach may discharge the insurer from liability from the date of breach.

The insurer's remedy of treating the contract as never having existed, typically after non-disclosure or misrepresentation.