Risks of debts arising from insolvency or default of a debtor.
Insurance Encyclopedia
Delay
1. An insured event under a travel insurance policy paying agreed sums if the insured’s holiday departure is delayed as a result of specified occurrence, e.g. industrial action, adverse weather, aircraft breakdown, etc. 2. Late arrival of cargo at destination caused by adverse weather, mechanical breakdown or some other reason. The marine extension clause (8.3, Institute Cargo Clauses) extends the warehouse to warehouse clause to provide continuous cover during any deviation, forced discharge, reshipment or trans-shipment or other interruption beyond the control of the insured. The clause extends existing cover during the delay but does not add ‘delay’ as an insured peril so loss of market, etc., will not be covered.
Delay clause (Life Insurance)
A clause that prohibits liability due to damages or loss due to delayed travel.
Delay clause / time clause
See: survivorship clause .
Delay in Completion and Performance Shortfall
Specialised policy for ‘blue chip’ construction companies with sophisticated risk management programmes. Cover provides protection against penalties incurred as a result of late completion of a contract or mile stones within the contract, and the post completion efficacy risk. Policies are customer-specific with negotiable deductibles based on cover up to US$30 million.
Delay in Voyage
As per provisions of 50 of Marine Insurance Act in the case of a voyage Policy, the adventure insured must be prosecuted throughout its course with reasonable despatch, and if without lawful excuse it is not so prosecuted, the Insurer is discharged from liability as from the time when the delay became unreasonable.
Delayed launch insurance
An insurance to cover the extra expenses arising from the delay in launching a satellite.
Delayed payment clause
Provision in a life insurance policy that means the beneficiary must outlive the insured by a specific amount of time to receive the death benefit.
Delayed payment clause (Life Insurance)
A clause within life insurance, stating that payout of benefits to the beneficiary will be delayed for a set amount of time after the insured’s death. If the primary beneficiary is deceased at the end of this time period, the benefits will be paid to contingent beneficiaries or the deceased’s estate. This clause is often used in the case of a common disaster where the insured and the beneficiary are both killed.
Delayed turnover
Postponed trade that a business interruption insurer is entitled to take into account when adjusting a claim. After trading is resumed, turnover may rise above the normal level due to postponed orders coming good. Provided this occurs within the maximum indemnity period the insurer can make due allowance in his calculation of the reduction in turnover. This adjustment is also called ‘clawback’.