IRDAI Surveyor Marine Hull (S-04) key terms

The marine insurance duty requiring both insured and insurer to disclose all material facts and avoid misrepresentation. Breach by the insured can allow the insurer to avoid the policy, subject to the remedies set out in the Marine Insurance Act.

Any circumstance that would influence a prudent insurer's decision on whether to accept the risk, the premium charged, or the terms imposed. Examples include cargo type, voyage route, vessel age and claims history.

Failure by the insured to reveal a material fact during placement or renewal of cover, whether deliberate or inadvertent. It differs from misrepresentation, which involves a positive false statement.

A legal or equitable relationship to the subject matter of insurance such that the insured benefits from its preservation and suffers loss from its damage or loss. It must exist at the time of loss for indemnity claims.

The rule that the insured should be restored, financially, to approximately the position held immediately before the loss, no better and no worse. It underpins valuation, deductibles, average and salvage credits.

The insurer's right, after paying a claim, to step into the insured's shoes and pursue recovery against the party legally responsible for the loss. Recovery is limited to the amount paid.

The Insurance Regulatory and Development Authority of India, the statutory regulator for insurance. It licenses surveyors, sets conduct and reporting standards, and issues regulations governing marine insurance practice in India.

An individual holding a valid IRDAI surveyor licence, authorised to investigate and report on marine losses above prescribed thresholds. Licensing depends on qualifications, experience, examination and continuing compliance with conduct rules.

The formal written output of a loss survey, recording facts observed, documents examined, cause of loss, extent of damage, repair or salvage recommendations and an assessment of the claim amount. It must be impartial and evidence-based.

Any situation where a surveyor's personal, financial or commercial interests could bias the findings reported to insurers. It must be disclosed and avoided, including prior involvement in the same vessel or cargo.

A marine policy insuring the physical structure, machinery and equipment of a vessel against perils of the seas and other specified risks. It is distinct from cargo and freight covers and typically subject to a deductible.

Standard London market clauses widely adopted in hull policies, setting out perils covered, exclusions, warranties, claims notice duties, deductible treatment and collision liability. They define the scope of cover in time policies.

A promissory warranty that the vessel is fit to encounter the ordinary perils of the insured voyage, with competent crew, sound hull and adequate equipment. Breach discharges the insurer from liability for subsequent losses.

A partial loss of the insured property caused by an insured peril, borne by the owner of the damaged property alone rather than shared across the venture. It contrasts with general average sacrifice.

A loss where the subject matter is abandoned because it is uneconomic to recover or repair, or where recovery cost exceeds the insured value. The insured must give notice of abandonment to claim as a total loss.

A loss where the insured property is destroyed, irrecoverably lost, or so damaged it ceases to be the thing insured. No abandonment notice is required to claim, unlike constructive total loss.

A formal communication by the insured to the insurer, after a constructive total loss, electing to abandon the insured property and claim a total loss. It must be given promptly and clearly.

The first amount of each claim borne by the insured before the insurer pays. It may apply per accident, per claim or per event, and its interaction with total loss claims and collision liability must be checked.

Standard cargo cover wordings offering all-risks (A), named perils with additional exclusions (B), and narrower named perils (C). The choice determines which perils, including theft or water damage, are recoverable.

Standard international trade terms defining buyer and seller obligations for delivery, risk transfer, insurance and cost. The risk transfer point determines who holds insurable interest at the time of loss.

Cover protecting goods in transit by sea and connected land legs against specified perils. Sums insured are usually based on CIF value plus an agreed percentage, and claims depend on packing, stowage and transit conditions.

The condition of a vessel being reasonably fit in hull, machinery, equipment, crewing and stowage for the intended voyage. It is judged at the commencement of the voyage and is central to hull, cargo and due diligence issues.

A private technical organisation that sets construction and maintenance rules for ships, surveys them periodically, and issues class certificates. Loss of class can void cover or affect seaworthiness findings.

The mark on a ship's side showing the maximum permitted draught under varying conditions and seasons, governed by international convention. Overloading beyond the mark indicates unseaworthiness and may breach warranties.

The technical process of identifying, measuring and valuing physical damage to hull, machinery or cargo, distinguishing pre-existing wear from new loss. It supports the surveyor's recommended claim figure and repair scope.

A detailed schedule of works needed to restore the damaged vessel or equipment to its pre-loss condition, including parts, labour and yard costs. It is used to test the reasonableness of invoices and claim quantum.

A deduction applied when damaged parts are replaced with new ones, so the insured does not profit from betterment. Hull policies often pay repair cost without deduction, but older machinery may attract betterment adjustments.

A maritime principle requiring all parties in a venture to share losses and expenses deliberately incurred to save ship, cargo and freight from a common peril. Adjustment follows the York-Antwerp Rules.

Internationally recognised rules governing the adjustment of general average, covering sacrifices, expenditure, contributory values and exceptions. They are usually incorporated into contracts of carriage and cargo policies.

A specialist who calculates general average contributions and apportions sacrifices and expenses among ship, cargo and freight interests. Their adjustment statement supports collection of security and settlements.

Voluntary assistance rendered to a vessel or cargo in danger at sea, rewarded by a salvage award or agreed remuneration. It is distinct from general average, though both may arise from the same casualty.

The international convention establishing the duty to render assistance and the basis for salvage awards, including special compensation for preventing environmental damage. It governs modern salvage operations and remuneration.

The insured vessel's legal liability for damage caused to another vessel or property through collision, usually covered under a hull policy clause subject to a separate limit. It is distinct from protection and indemnity cover.

Legal liability owed to persons or property outside the insured contract, such as port installations, other vessels or crew. Marine hull and P&I covers allocate such liabilities under different clauses and limits.

A pre-cover or periodic survey examining vessel condition, management, crewing and loss history to inform underwriting decisions and loss prevention recommendations. Findings may carry warranties, exclusions or premium adjustments.

Measures recommended or required to reduce the likelihood or severity of marine losses, such as improved stowage, maintenance schedules, firefighting readiness and crew training. Surveyors often recommend them in reports.