Boston plan

This is a plan under which insurers agree that they will not reject property coverage on residential buildings in a run-down part of town. Instead, they will accept the coverage until there has been an inspection and the owner has had an opportunity to correct any faults. Boston was the first city to originate such a plan, and many other cities have followed, including New York, Oakland, Cleveland, and Buffalo.

Both to Blame Clause

Under a contract of affreightment cargo is normally carried at the risk of the cargo owner who insures it. Where a collision between two ships damages the cargo, and both ships are to blame, the cargo owner will sue the third party ship owners who, by the law of some countries, can then recover part of the cargo claim from the carrier in whose ship it was carried. The Both to Blame Collision Clause in the contract of affreightment allows the ship-owner in these circumstances to obtain reimbursement from the cargo owner. The Both to Blame Collision Clause in a marine cargo policy indemnifies the cargo owner for such a payment.

Both to Blame Collision Clause

An Institute Cargo Clause indemnifying the cargo owner against the cost of reimbursing the shipowner who is compelled under foreign law to pay 50 per cent of a third party’s cargo loss to a third party shipowner following a collision in which both were blameworthy. Under US law the shipowners are held of equal blame and the cargo owner can recover in full from the third party shipowner who then recovers 50 per cent from the ship carrying the cargo. Provisions in the running down clause prevent the shipowner recovering in full under the hull policy, nor is the Protection and Indemnity Club liable, causing the shipowner to pass the risk to the cargo owner under the affreightment.