A listing of the rupee losses associated with each possible risk management tool and each possible outcome. For example, a decision to retain would produce a loss of Rs. 10,000 if a Rs. 10,000 loss occurs, A decision to purchase complete Insurance would produce a ‘loss’ of the Insurance premium no matter what the outcome may be. The original loss matrix should be converted to an after-tax basis and extended o include the intangible costs (worry caused by short-run uncertainty) as well as the tangible rupee losses.
Tag: RAW
Loss Multiplier
A factor applied to a loss cost to develop a premium rate.
Loss occurrence
1. Occurrence of a single loss. 2. An occurrence of several losses arising out of the same incident or catastrophe in accordance with a policy definition such as an hours clause or claims series clause.
Loss of attraction
Extension to a business interruption policy covering loss of gross profit due to damage to a nearby attraction that draws passing trade to the business. It is an external dependency. Fire damage at the main store in a shopping mall will reduce sales in neighbouring shops.
Loss of documents
Documents vary in nature and value. Material damage policies provide cover only in respect of the cost of the materials and the cost of labour in reinstating the documents. There is no cover for consequential loss. Professional indemnity policies cover ‘all risks’ on the insured’s own documents and those for which the insured is responsible. They also cover the insured’s legal liability for loss of documents. See COMPUTER SYSTEM RECORDS.
Loss of engagements
The marine equivalent of ‘loss of use. A shipowner, who loses the use of his ship through an insured peril insures for ‘loss of engagements’.
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Where a ship owner is deprived of the use of a ship through an insured peril, e.g., collision, the loss consequential on loss of engagements is insurable.
Loss of expectation of life claims
As a separate head of claim it was abolished by the Administration of Justice Act 1982. However, if the claimant’s expectation of life has been reduced, any award for pain and suffering may take account of the claimant’s anguish caused by his awareness of this reduction.
Loss of hire insurance
Insurance for shipowners who may lose a charter as a result of a casualty. The insurance pays an amount per day for a certain number of days per year (e.g. 90, but could be 360) once a ‘time deductible’, e.g. 14 days, has been exceeded. Cover follows the International Hull Clauses but excludes total loss.
Loss of Hire Policy
This covers loss of hire suffered by the ship-owner if the vessel which is given on charter is laid-up for repairs following a casualty covered under terms of the Hull and Machinery Policy.
Loss of Hire Policy for Marine
This covers loss of hire suffered by the ship-owner if the vessel which is given on charter is laid-up for repairs following a casualty covered under terms of the Hull and Machinery Policy. The conditions applicable are those covered by Institute Time Clauses-Hulls, but excluding Total Loss. It is usual to stipulate that repairs must be commenced within 12 months of the expiry of the policy.