Page 43 - Insurance Surveyors Book Ebook IC S01

Survey And Loss Assessment IC-S01

SOME FAMILIAR TERMS USED IN MARINE INSURANCE

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

irrecoverable.

Average: Average in Marine Insurance refers to partial loss.

Barratry: It is the wrongful act committed wilfully by the master and/or crew against

the shipowner.

Bill of Exchange : It is the bill drawn by the exporter against the importer.

Bill of lading : It is the receipt given by the shipowner to the shipper as an evidence

that goods are loaded on board the ship.

C & F Contract : C & F signify cost and freight. As per this contract the buyer is

responsible for loss or damage to the goods and the freight as well and for that he

arranges insurance.

C.I.F.Contract : CIF means cost, insurance & freight. In this type of contract it is the

sellers responsibility to arrange insurance before he adds insurance premium in the

invoice.

Constructive Total Loss : In constructive total loss the goods are not physically

destroyed but so damaged that the cost involved in bringing back to its original

position would be more than the value of goods after repair. Such loss is also called

commercial loss.

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