Maritime term meaning wreckage floating on the sea (Merchant Shipping Act 1894).

Marine insurance clause for the insurance of flour as cargo. Cover is in respect of ‘all risks’ whatsoever but excludes damage by weevils, inherent vice, etc.

Explosion of gases in boiler flues (i.e. pipes). It is the result of ignition and not of the sudden release of internal pressure as in the case of a steam boiler explosion. The boiler and pressure plant policy can be extended to cover the explosion of gas in the furnaces or flues of the plant. Cover follows the terms of the boiler policy and therefore covers self-damage and the consequences thereof in terms of surrounding property and third party risks.

Term used by personal accident insurers in connection with the risk of accidental bodily injury arising from flying either as a member of the crew of an aircraft or as a fare-paying passenger on a scheduled flight. The former risk is underwritten in the aviation department and the latter is covered under conventional personal accident insurance.

A clause under which the reinsurer agrees to pay its share of the cedent’s settlements. The reinsurer is not normally obliged to pay if the reinsured is not liable under the policy or the loss is excluded under the treaty. The clause modifies the position by requiring the reinsurer to follow the settlement rather than the contract.
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REINSURANCE: Follow the settlements generally provides that a reinsurer must cover settlements made by the reinsured in a business-like manner, provided the settlement is arguably within the terms of the reinsured’s policy and the reinsurance agreement and the settlement is not affected by fraud, collusion or bad faith. It is an expectation that the reinsurer will abide by the reinsured’s good faith determination to settle, rather than litigate, claims under a reinsured policy and not re-litigate a reinsured’s settlements ceded to the reinsurance agreement. The term is often used interchangeably with follow the fortunes, and there may be overlap between the affect of follow the settlements and follow the fortunes when the “risk” is what generated the loss. Follow the settlements is focused on “loss settlement”, not necessarily tied to a “risk determination” arising out of follow the fortunes. Follow the settlements will not supersede the express terms and conditions of the reinsurance agreement.

Popular name for the FT-SE 100 Share Index, the UK’s main benchmark index. It measures the daily share price performance of Britain’s top 100 limited companies ranked by their size.

Contingency cover, issued in the engineering department, in respect of a project owner’s debt obligations to banks in the event of late completion or abandonment of a project due to ‘force majeure’. It also applies to a contractor’s ‘out-of-pocket’ expenses when an overseas project is abandoned.

Sale of cargo to obtain funds needed to prosecute the voyage for the common good. Any loss is admitted as a general average sacrifice. However, this only applies when cargo can be forwarded in no other way and is preferable to remaining on board until the voyage can be completed.

Theft insurance wording to distinguish theft involving an ‘attack’ on the premises from theft without such an attack. The insurer generally covers theft following upon forcible and violent entry or followed by forcible or violent exit’. The words eliminate shoplifting or entry via an open door. The word ‘violence’ is used in its ordinary sense, meaning that an entry, where force might otherwise have been minimal, should be by a physical act characterised as violent. See FULL THEFT COVER.

A mortality table that takes account of anticipated changes in mortality. It indicates expected future mortality.