Vessel
Insurance Encyclopedia
Vessel/Ship
The ship (or vessel) may be described as a floating box made of steel in such a manner that it can safely travel in water in most weather conditions when carrying her load or empty. The front end of the ship which facilitates forward movement is called bow and her rear end which may be blunter, rounded or squared off is called the stern. The flat roof over the ship’s hull (body) is known as the deck which may have one or more openings called hatches. Below the hatches are holds or cargo spaces. The stern is fitted with the rudder which provides steering control and the propeller or screw which rotates at great speed to drive the ship. There are two types of Vessels (a) Sea or Ocean-going vessels: Usually have more than 5000 MT Gross Tonnage and are mechanically self-propelled Vessels of Steel Constructions. They are required to be “Classes” with any of the internationally recognized IACS-Member Classification Societies. (b) Sundry or Coastal Vessels are smaller crafts generally of local origin, built of steel, wood or fibre-glass, which is not subject to classification generally. If classes it would be a better risk. Normally used in inland, coastal waters, rivers, lakes or within Port waters.
Vested benefit
Retirement benefit payment that does not depend on whether a participant continued in specific employment. A plan participant may receive payment if he or she leaves the plan.
Vested commissions
Renewal insurance commissions paid to insurance agents or their estates regardless of whether the agents stay with the issuing insurance company.
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Commissions paid to an agent regardless of whether they still work for the insurer, based on renewal business.
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Commissions on renewal business that are paid to the agent whether or not he or she still works for the insurance company with which the business is placed.
Vested interest (Legal Terminology/Estate Planning)
The right a person has to enjoy their personal property, whether now or in the future.
Vested liability (Pensions)
The non-forfeitable value of a person’s retirement benefits at present.
Vested reserves
Funds (reserves) that remain owned (vested) by the insured and which cannot be used by the insurance company except for paying refunds or claims.
Vested rights
Pensions term meaning: (a) benefits to which active members would be unconditionally entitled on leaving service; (b) the preserved pension benefits for deferred pensioners; (c) pensions entitlement of current pensioners; including, where appropriate, the related benefits for spouses or other dependants.
Vesting (Life Insurance)
The right to a benefit, given to a participant because of contributions made by the employer. The participant does not need to still be employed by the employer making the contributions.
Vesting bonus
Bonus declared in respect of, and allotted to, with profits life policies. Once declared it is said to ‘vest’ and is added to the life insurance benefit and the existing bonuses. All vested bonuses become payable under the same conditions as the sum insured. With profits benefits once added are guaranteed.