The Rantings of the barely human.
Partial payment of freight charged in advance.
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UK: Freight paid in advance by cargo owners to shipowners on the basis that it is ‘not repayable in case of loss. The cargo owner insures the risk by merging the advance freight with the value of the goods. Unless arranged in this way, English law insists that freight is only payable on right delivery of the goods. A charterer may also insure advance freight.
In the case of advance freight the person advancing the freight has an insurable interest, in so far as such freight is not repayable in case of loss.
Generally, designating money to fund future benefits. Commonly used in pensions to fund eventual retirement.
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Process in which an employer who is sponsoring a pension plan deposits money in a fund during the participants’ working years to guarantee payment of pension benefits to the plan’s participants when they retire.
See: ” Engineering Insurance: Advance Loss of Profit Insurance (ALOP)/Delay in Start-up Insurance (DSU).”
ALOP is also known as Delay in Startup and cover financial consequences of a project being delayed because of Occurrences related to natural perils inherent defects and human failures that lead to material damage of an accidental nature resulting into accidental damage to the project material during erection/testing stages and thereupon consequently loss of profit due to delay in startup of the Project. It basically follows the principle characteristics of an annual consequential loss policy but is issued in advance of the actual commencement of the business since it is a compulsion from the financers of the Project. For the insurers, the financial consequences at stake are those which relate to the period after the contractor would have handed over the plant to the owner/principal and commercial operations commenced. Thus, the principal alone and his financiers have an insurable interest in the financial consequences of a delay in the project and as such policy is issued to the principal/owner of the project with the interest of the financiers suitably recorded. Policy provides to indemnify the principal or the project owner for the actual financial loss sustained due to delay in commencement of the commercial operations of a new project which is under installation/construction. Delay must be caused by direct physical loss or damage admissible under material damage CAR/EAR policies covering the contract works. Sum Insured is computed on the basis of the financial model of the project. The period for ALOP coincides with the EAR/CAR policy period including the testing period, if covered, and terminates with the commencement of commercial operations. The period of indemnity commences on the COD i.e., the day on which the project would have been taken over by the owner had the accident not occurred, and ends on the day the commercial operation starts. The time excess or the waiting period is the period within the period of delay for which loss is borne by the insured.
Option at retirement whereby the individual’s pension payment (monthly, quarterly or some other period) may be payable at the beginning or end of the relevant period. Payments in advance attract a small cost.
Similar to a performance bond. It safeguards the principal, who has made advance payments to the contractor, against loss due to poor performance or default by the contractor.
The payment made at the start or beginning of the period covered by the Insurance Policy.
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Also called deposit premium, an advance premium is a down payment on what will be the final premium, in policies where the final premium is subject to audit.
An insurance company owned by its policyholders that charges an advance premium that is expected to cover losses and expenses; policies may be assessable or non-assessable.
A form of business interruption insurance relating to a new business or a new activity for an existing business. It covers loss of gross profit following delay consequent upon damage insured under a contractor’s all risks or erection all risks policy. The delay in starting the activity may be due to damage to: (a) the new works, extension or machinery; (b) suppliers’ premises; (c) machinery in transit. The indemnity period commences on the date production was intended to start and continues until it does actually start, but any increase in cost of working is calculated from the date of loss.