A 1929 agreement (updated by the Hague Protocol 1955) that limits the liability of airlines in the event of accidents’ on international flights. In 1966, the top limit was increased to $75,000 for personal injury except in the event of the airline’s ‘wilful misconduct’. This limit no longer applies to EC carriers following the EC Regulation 2027/97. Other carriers have also contracted out of the Convention’s injury limits. The Convention, which also limits liability on luggage, continues to apply in some situations. The IATA Inter-Carrier Agreements on Passenger Liability has modernised’ the Warsaw Convention principally by increasing or removing the limitations on passenger liability for injury or death, revising the basis for airline liability and simplifying ‘travel documents’. See IATA.
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An agreement between nations establishing limits to the amount of liability a company will be obligated to pay for bodily injury or death stemming from injuries incurred on an international flight.
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This convention dealt with the liability of the air carrier in respect of injury to passengers, damage to their baggage and damage to cargo carried. This convention established the principles of presumption of liability against the carrier, fixed the limits of such liability and laid down the defenses available to the carrier as also the circumstances in which the carrier loses the benefit o fixed liability limits. India, which is a signatory to the Convention, gave statutory effect to the provisions of the Convention, by passing the Carriage by Air Act, 1972.” See Also: “Carriage by Air Act, 1972.”

Warranty under commercial fire insurance cover requiring the insured to take specific action to control waste. Examples: all oily and/or greasy waste remaining in the building overnight to be kept in metal receptacles with metal lids and removed from the building once a week; warranted all combustible trade waste and refuse be removed from the building every night; warranted all sawdust, shavings and other refuse be removed from the buildings every night.

Marine market agreement whereby underwriters will cover goods against war risks while they are actually on the overseas vessel subject to a 15 day time limit after arrival at the destination. Limited cover applies while the goods are in craft en route between the ship and the shore and, also during trans-shipment. The agreement is given effect in the Institute War Clauses (Cargo) by the Waterborne Clause.
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A London market agreement whereby all cargo Insurers undertake not to provide cover against war risks for cargo whilst it is on land except for a limited period in a dock area whilst it awaits loading on to an on-carrying vessel during transshipment.

Marine insurance term whereby the insurer forgoes the benefit of the salvage. Tonner reinsurance contracts are written both WBS and PPI to obviate questions of legal enforceability when salvage is clearly impossible.

Arises out of the normal use of property and is excluded from property insurances although would not, in any event, be embraced by terms such as ‘accidental damage. However, ‘new for old’ policies disregard wear and tear in claims settlements. See REINSTATEMENT POLICIES.
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The amount deducted from a claims payment in recognition of the depreciation of the property insured through usage of it over time. Where cover is provided on a ‘new for old basis’ ie where the insurer agrees to replace an old item with a similar new one, no such deduction is made.

A security, swap or option whose value is directly related to weather events over a specified time in a specified location. Weather derivatives pay cash flows depending on occurrences such as deviations from average temperature, precipitation levels, etc. Companies use weather derivatives as a hedge against weather conditions damaging to their trade, e.g. pavement café suffers during a cool summer and may acquire heating degree days. See COOLING DEGREE DAYS; WEATHER SWAPS; WEATHER INDICES; ENERGY DEGREE DAYS; GROWING DEGREES; PRECIPITATION.

The underlying index upon which weather derivatives are based. The two main temperature indices are heating degree days and cooling degree days. Other weather variables: maximum or minimum temperature; critical temperature events (temperature passing a defined value); rain and snowfall; windspeed.

Insurance for the promoter of an outside event, e.g. outdoor play, that depends on specific weather conditions. The policy pays if, for example, a preset rainfall level is exceeded leading to cancellation or reduced attendance. See ABANDONMENT OF EVENT; WEATHER RISK; PLUVIUS POLICY.
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The basic purpose of “weather insurance” is to give payouts by estimating the percentage deviation in output due to adverse deviations iin weather conditions. In weather insurance the contingent claims are determined by an objective weather parameter (such as rainfall, temperature, humidity) that is highly correlated with the type and class of production unit. Particularly, related to crop production.

1. Adverse effect on corporate costs or revenue of the non-catastrophic effect of weather that deviates from normal conditions; e.g. poor heating energy sales due to mild winter. Weather-sensitive businesses use weather derivatives. 2. Risk of injury/damage by high severity/low probability events such as severe windstorm. Insurance is the usual response. 3. Adverse effect on insurers’ underwriting results following widespread losses through hurricane, tornado, flood, etc. Reinsurance is the traditional response, but catastrophe bonds or swaps, and other alternative risk transfer products, are also used. See also WEATHER INSURANCE; PLUVIUS INSURANCE.