An Insurer who enters into a contract with the Insured, agreeing to indemnify the Insured, subject to the limits of the contract, for losses incidental to a marine adventure.

A contract of marine insurance is concluded between the parties when the proposal is accepted by the Insurer. However, the contract is inadmissible as evidence into a court of law unless it is embodied into a marine policy.

One who accepts liability for marine losses.

Perils of the seas and incidental thereto.

The price for which something would sell, especially the value of certain types of assets, such as stocks and bonds. It is based on what they would sell for under current market conditions. For example, common stock market value would be the price of the stock as of a specified date.

A circumstance is material if it would affect the decision of the Insurer to accept the risk, or in the rating of the premium. Non-disclosure of a material circumstance entitles the Insurer to avoid the insurance contract.

The policyholder/applicant makes a false statement of any material circumstance on his/her application. For instance, the policyholder provides false information regarding the location where the vehicle is kept.

Certain types of light machinery and electrical equipment may be found to be ‘not working’ although there are no outward signs of damage. It is usual in marine insurance to exclude this type of loss.

The cost of paying medical bills for physicians, surgeons, technicians, nurses or other medical personnel.

The duty of the Insured or his agents, by policy terms or statute law, to take such measures as may be reasonable for the purpose of averting or minimising a loss.

The least amount of premium for which a policy or coverage may be issued or initiated.

An attitude that increases the probability of loss from a peril. The attitude of, “It’s Insured, so why worry?” is an example of a moral hazard.

The creditor by whom a mortgage is given, and who lends money on the security of the value of the property mortgaged.

A clause in an insurance policy giving beneficial rights, under the policy, to a mortgagee or other lender of money, on the security of the property insured.

The debtor who receives money and in turn grants a lien on his property as security for a loan.

Coverage on the risks associated with driving or owning an automobile. This may either be third party liability only or may include comprehensive cover.

The disappearance of insured property by an unknown cause.