Aviation Hull and Liability Insurance
Deals with the insurance of aircraft.
Barratry
Any wrong deliberately committed by the shipmaster or crew to the detriment of the owner or character of the vessel, without any connivance on the part of the owner.
Boiler & Machinery (B&M) Insurance
Also referred to as Machinery Breakdown (MB) Insurance or Boiler Pressure Vessel (BPV) Insurance; the accident insurance for boilers, pressure vessels and other machinery. The basic cover provides indemnity for repair or replacement in the event of sudden and unforeseen mechanical or electrical breakdown or explosion.
Bond
An agreement among three parties, whereby a surety company jointly and severally guarantees the performance by an individual (called the principal) of an obligation or undertaking in favor of a third party (called the obligee).
Brigandage
When more than three armed persons form a band of robbers for the purpose of committing robbery in the highway, kidnapping persons for the purpose of extortion or to obtain ransom, or for any other purpose to be attained by means of force and violence.
Burglary
The felonious abstraction of insured property from within the premises, by any person or persons making felonious entry into or exit from the premises, by actual force and violence when the premises are not open for business. In order to be covered, such forcible entry/exit should leave visible marks upon the exterior or interior of the premises at the place of entry/exit by tools, explosives, electricity or chemicals.
Burglary Insurance
Indemnifies the named insured against loss of or damage to the insured property caused by burglary.
Chance of Loss
Expressed as a fraction in mathematical equation, it is the long run relative frequency or the probability of a loss.
Clauses
Written stipulations used by insurance companies for the purpose of modifying, limiting, extending or clarifying insurance coverages, granted thereunder to make the printed policy form adaptable to all the kinds of circumstances and needs of the insuring public.
Co-Insurance
Refers to two or more policies of insurance of the same type, covering the same property of the same interest at the same location.
Comprehensive General Liability (CGL)Provides cover against legal liability to third parties due to accidental bodily injury and/or property damage.
Also provides defense, settlement and supplementary payment such as:
1. defense costs of any Civil Suit seeking damages from the insured on account of bodily injury or property damage;
2. premiums on bonds;
3. court costs taxed vs. the insured;
4. expenses for immediate medical and surgical relief to others as may be imperative at the time of the accident; and,
5. reimbursement of reasonable expenses incurred by the insured at the insurer's request in the investigation or defense of a claim/suit.
Comprehensive Personal Liability (CPL)
Provides legal liability to third parties, which may arise from ownership, maintenance or use of the insured's home, pets, sports and other personal non-business activities.
Concealment and Misrepresentation
Concealment is the neglect to communicate what either party knows and ought to communicate. Misrepresentation is the misstating of facts, assertions or stipulations in the negotiations which are necessary to induce the insurers to enter into the contract. Concealment will entitle the injured party to rescind or nullify an insurance contract.
Contribution
Contribution concerns double insurance and/or co-insurance, i.e., where there is more than one insurance in force covering the same subject matter and the same interest, against the same peril.
The Principle of Contribution means that, should several insurers cover the same interest, peril and subject matter, each insurer is bound, as between himself and the other insurers, to contribute ratably to the loss, in proportion to the amount for which he is liable, under his contract. In case of a loss, there will be proportional sharing (among all concerned insurers) of the burden to pay or settle the claim of the insured.
Crime Insurance
Provides coverage against direct financial losses caused by criminal activities such as robbery, burglary, embezzlement, larceny, and brigandage.
