Glossary

Abandonment
For a damaged property it may not be worthwhile to go in for repairs because the cost of repairers may exceed the value of the property when repaired. The insurer is entitled to take over the interest of the assured in whatever may remain of the Subject matter insured and all proprietary rights incidental thereto. In ocean marine insurance, the transfer by the insured to an insurer of all rights, title, and interest in and to the insured property, in return for the sum insured. In property insurance, abandonment is relinquishing ownership of damaged property to an insurer to permit a total loss claim to be made.

Absolute Liability
Liability for damages even though faults or negligence cannot be proven.

Absolute Ownership
Absolute ownership exits where the interest or explicit right of possession of the insured is so free from limitations, qualifications or restrictions that it cannot be taken from him without his consent.

Accident
Any Unforeseen and unexpected event is considered an Accident

Accident Insurance
A form of health insurance against loss by Accidental bodily injury.

Accident, Hit and Run
Hit and run Accident arising out of the use of a motor vehicle or motor vehicles the identity whereof cannot be ascertained inspite of reasonable efforts for the purpose.” Section 163 of the motor vehicle, 1998 provides that the central government may establish a fund known as the solarium fund to be utilized for paying compensation in respect of death or grievous hurt to persons resulting from hit and run motor Accident.

Accompanied Baggage
baggage being taken by someone with his own person whilst travelling.

Acquisition Costs
The insurer's cost of putting new business in force, including the agent's commission, the cost of clerical work, fees for medical examinations and inspection reports, sales promotion expense, etc.

Act of god
Any Accidental act which could not have been prevented by any amount of human care and fore thought.

Actual Total Loss
It is a loss where the goods are completely lost and become irrecoverable.

Ad valorem duty
duty evaluated on percentage of cargo value.

Additional cover
An insurance policy extended to cover additional risk perils such as strikes. Riots and Civil commotion etc. on payment of extra premium.

Agreed bank Clause (Agreed Mortgagee Clause)
A provision in the insurance contract under which the insurer obligates itself to pay the mortgagee even if the owner breaches some contract condition so long as the breach was not within the control or knowledge of the mortgagee. Also refer "Mortgagee Clause."

Agreed value policy
Policy which undertakes to pay a specified amount in case of total loss. under this case the policy does not take into account the current market value.

Airway bill
Airfreight consignment note.

All risk insurance
Insurance against loss of or damage to property arising from any peril except those that are specifically excluded.

Arbitration
A form of alternative dispute resolution where an unbiased person or panel gives an opinion about quantum of loss.

Arson
The wilful and malicious burning of, property, often with criminal intent.

Assessor
Person who estimates the value of goods for the purpose of apportioning the sum payable by the underwriters to settle the claims. Also called as Surveyor.

Assets
All funds, property, goods, securities, rights of action, or resources of any kind owned by an individual or institution.

Assured
Party indemnified against loss by means of insurance.

Automatic reinstatement Clause
A clause in an insurance policy which provide for automatic reinstatement of the full face value of the policy after payment for a loss,.

Automatic sprinkler
A property protection device to prevent damage by fire. The sprinkler head is made of a Substance that melts at a low point and releases a spray of water to extinguish fire.

Automobile fleet
A group of automobiles under the same ownership and management.

Average adjuster
Independent expert who assesses the liabilities of the various parties to a common maritime adventure and to classify the various items of expenditure between general and particular average, viz, ship, freight and cargo.

Aviation Insurance
Aircraft insurance including coverage of aircraft or their contents, the owner's Liability, and Accident insurance on the passengers.

Avoidance
A right which can be exercised by and underwriter to relieve him of Liability under the policy because the assured has been guilty of a breach of good faith or where the risk in voyage policy has failed to attach within a reasonable time after the underwriter wrote the risk.

Award
The decision in Arbitration.

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