Marine Insurance Glossary for Online Applications

Insured value

The agreed or proposed monetary value used for the insured interest. A proposed value in a calculator still needs to be appropriate for the interest and accepted in the placement.

Premium

The price charged for the insurance under its terms. An indicative premium is an estimate; fees, tax, minimum amounts or additional terms may need separate confirmation.

Rate

The percentage used in a premium formula. Compare the rate together with its value basis, coverage period and conditions, rather than as an isolated number.

Deductible / excess

The portion of a covered loss borne by the insured under the contract. The wording determines whether it applies per casualty, claim, item or another basis.

Limit

The maximum payable amount for a defined cover or exposure, subject to policy terms. An overall insured value and an individual sublimit are not necessarily the same.

Underwriting

Assessment of the proposed risk and the terms on which it may be accepted. Relevant facts can include vessel condition, cargo, route, value and claims history.

Binding

The authorized agreement that puts insurance in place on stated terms. An online estimate, an application or a bank transfer alone does not establish binding.

Subjectivity

A stated requirement associated with the terms offered. Its wording determines what must be done and when; unresolved conditions can prevent binding.

Inception / expiry

The start and end of the agreed insurance period. State dates, times and any relevant time zone rather than relying on an ambiguous calendar date.

Exclusion

A provision restricting what the contract covers. A broad description of cover must be read with its exclusions and any agreed extensions.

Endorsement

A document or provision changing or adding to the insurance terms. Check which version applies and whether it changes the premium, scope or effective dates.

Policy / certificate

The policy sets out insurance terms; a certificate summarizes or evidences specified cover. Read them together with the schedule and applicable wording.

Claims history

The record of previous incidents, losses and claims relevant to the enquiry. Explain causes, outcomes and corrective measures when requested.

Waiting period

The period that must pass before a time-based benefit responds under its terms. The loss-of-hire calculator records it separately from daily hire × insured days.

Annual declared cargo value

The declared cargo exposure used for an annual programme. It is not automatically the maximum insured value of any one shipment.

Fleet discount

A reduction applied to the calculated fleet base premium where selected and eligible. The website shows the discount separately; underwriting still determines final terms.

Check the exact clause, not just its nickname

Wording titles and clause numbers help identify the relevant contract form. The Lloyd’s repository allows searches for policy wordings and clauses; a familiar label alone does not establish that a particular version was incorporated into your policy.

Reference: Lloyd’s Wordings Repository: identify the applicable clause. This reference describes its own framework and does not establish MarineEnergyCover’s authority or the terms of an individual placement.