A clause whereby cover excludes partial losses unless the vessel has been stranded, sunk, burned or in collision with another vessel regardless of whether such losses were actually caused by these perils. This ‘major casualty’ partial loss insurance is the substance of Institute Cargo Clauses (C) used particularly for bulk cargoes such as grain.

War peril exclusion under SG policy. The War Exclusion Clause is now integral to the Institute Cargo Clauses and the International Hull Clauses.

UK: A sales contract, mainly used for bulk cargoes (coal, grain), whereby the seller is responsible for the goods until loaded (‘over ship’s rail’) and the buyer is responsible for all charges (including insurance) thereafter.
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The designation of the place of free on board determines the responsibility for insuring shipped goods. For example, “free on board origination” or just “free on board” means that the seller’s responsibility for damage ends when the goods are loaded onto the carrier’s truck, train, or ship. At that point, any damage is the responsibility of the buyer.”Free on board destination” means that the shipper assumes responsibility for damage to the shipped goods until the goods are off-loaded at the buyer’s location. In either case, risk managers need to know when their responsibility for damage begins and ends in order to avoid gaps in coverage.
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The term has special significance in Marine Insurance, where it is vital to determine when title passes from the seller to the buyer. If the materials are shipped FOB point of destination, the seller is liable for damage caused during the course of transportation. If the material is shipped FOB point of departure, the buyer becomes liable for it.

the excess of the value of an insurer’s assets over the sum of its liabilities and its minimum solvency margin.
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The excess of the value of an insurer’s assets over its technical reserves and current liabilities. Sometimes, referred to as shareholders’ funds or net asset value.

Additional voluntary contributions to an insured defined contribution scheme that is independent of the member’s occupational pension scheme. Where contributions exceed £2,400 per annum (year 2002/3) the FSAVC administrator must carry out a headroom check except for scheme members with net relevant earnings below £30,000 who also contribute £3,600 each year to a stakeholder pension. An FSAVC must be used to purchase a retirement annuity with no tax-free lump sum.

The right to transact business across national frontiers with those domiciled in another country without having an establishment in that country.

Clause incorporated in freight policies to cover threefourths of the shipowner’s liability for collision damage that may attach to freight. The clause is used only where freight is liable to be called upon to contribute to collision liability, i.e. where certain foreign laws may apply to the settlement. In English law freight is not taken into account in assessing the shipowner’s liability for collision.

Insurable interest of a consignee who has paid freight on goods when delivered over the ship’s rail but where the goods remain at risk until arriving at the final destination.

The insurance of the freight earned by shipowners. Shipowners usually insure freight for 12 months by fixing an amount that could be earned on any one round voyage. Bill of lading freight is normally paid in advance and added to the value of the goods by the cargo owner. The insurable value of freight is the gross value of freight receivable by the shipowner plus the cost of insurance. See also FREIGHT; FREIGHT COLLISION CLAUSE.

Clause 22 of the International Hull Clauses (11/2002) under which the insurer waives his right to freight earned or to be earned by a ship that is the subject of a constructive total loss claim. See ABANDONMENT.