| TITLE |
DESCRIPTION |
| D/O |
Delivery order. |
| DAF |
Delivered at frontier – Incoterms. |
| Damage by other cargo |
Taint damage or contact damage to the insured cargo caused by other cargo. Without the operation of an insured peril damage by other cargo is not covered y the policy. |
| Damaged Value |
The actual value on arrival at destination. On hulls this is the value without any repairs being taken into account. On cargo the value may be net or gross. Gross damaged value is the value of the damaged cargo after all landing charges and duty have been paid. Net damaged value is the value of the damaged cargo before all landing charges and duty are paid. Claims are calculated on cargo by comparing sound and damaged gross values. |
| Dangerous Goods |
If goods of a dangerous, explosive or inflammable nature are shipped, without consent of the master or his knowledge of their nature, the master may land or destroy or render innocuous the goods without any compensation being payable to the owner. The shipper may be held liable for damages and expenses in respect of such goods. The master may treat equally any goods of such dangerous nature loaded with hi s knowledge and consent, if they become a danger to the ship or cargo, without incurring any liability except to general average, if any. |
| DCP |
Delivered carriage (or freight) paid (Incoterms). |
| Deadfreight |
When space is booked on a vessel but is not used the freight is still payable and is called “deadfreight”. The right to such deadfreight is usually exercised only under charterparties. |
| Deadweight Tonnage |
A calculation based on the weight of cargo, stores and fuel necessary to bring the ship down to her loadline marks. It is often defined as being the carrying capacity of the ship. Where practical, hull insurers use a formula for determining the deadweight of a ship as a basis for calculating her size in estimating the appropriate premium necessary to cover the anticipated cost of repairing the ship. |
| Deck Cargo |
Cargo carried on deck. Such cargo is not embraced by the terms of the Carriage of Goods by Sea Act 1924. Insurance on cargo is deemed to apply only to cargo under deck unless the insurance specifically states the cargo is carried on or over deck. Jettison of deck cargo is only allowable in general average if the cargo is so carried by custom of trade. |
| Declaration |
A statement. An advice made by the assured under an open cover. |
| Deductible |
An amount or percentage specified in the policy which must be exceeded before a claim is payable. When the deductible is exceeded only the amount which is in excess of the deductible is recoverable under the policy. At one time it was common for the word ‘excess’ to be used for this purpose in English policies, but this practice has died out in favour of ‘deductible’. The deductible is, normally, expressed in the policy as a sum of money and is, generally, applied only to partial loss claims. |
| Defeasible Interest |
A defeasible interest is an insurable interest which ceases during the currency of the voyage. Such an interest would be the interest of a seller who loses title to goods whilst they are enroute. |
| Defence Costs |
Legal expenses incurred by the assured in defence of a claim for which the insurer would be liable. It is the practice for the insurer to agree to reimburse the assured for such costs where properly incurred with the insurer’s consent. |
| Delay |
Losses proximately caused by delay are excluded from cover (this applies, equally, to a cargo insurance covering ‘all risks’), even though the delay may be caused by an insured peril. The exclusion does not affect liability for general average or salvage contributions, even though these may incorporate expenses consequent upon delay. |
| Demise Charterparty |
Occurs when the charterer agrees to take over the vessel completely for a period of time, whereby he supplies his own master, engineers and crew. |
| Demurrage |
Money paid to the shipowner in compensation for delay of a vessel beyond the period allowed in a charterparty when loading or discharging. In marine insurance the term is used to denote any loss of hire period incurred by the shipowner. |
| Denting |
Peril mainly affecting hollowware metal products. It is usual to exclude this peril unless the premium is loaded to cover the risk. |
| Deposit Premium |
A premium paid in advance as a deposit when it is not practicable at the time of placing to assess the final premium. It is usual for a provision to be made at the time of placing to allow for adjustment on expiry of the policy. In some cases the deposit is specified as a minimum premium, in which case the adjustment is made only if the final premium exceeds the deposit premium. |
| Depreciation |
Loss in value. A percentage of depreciation is assessed in respect of cargo damage to apply to the insured value to ascertain a claim. When a vessel is unrepaired at the expiry of the hull policy a reasonable allowance is given under the policy for depreciation by reason of the unrepaired damage, but not exceeding the reasonable cost of repairs had they been carried out at the proper time. |
| Description of Goods |
Goods must be described in the policy with reasonable certainty in order that they may be readily identifiable as being the subject matter covered by the policy. It is usual to show the “marks” on the policy for this purpose. |
| Detainment |
Refers to the act of detaining ship or cargo and depriving the assured from the use thereof. Detainment by executive or political acts is excluded from both hull and cargo policies covering marine risks, but is deemed to be covered by war risks policies. |
| Deterioration |
Loss in quality without the help of an outside agency. Since this is not a fortuity it is not embraced by the term “risk”, so deterioration is not covered by an “all Risks” policy unless it is specifically included. Deterioration cover is generally sought by the owner of perishable goods, the proximate cause of loss being delay. Delay is an excluded peril unless the policy states otherwise, hence it is usual in deterioration insurance to state “including deterioration from any cause whatsoever. |
| Deviation Clause |
A clause in a hull voyage policy which provides that the assured shall not be prejudiced by deviation on condition that he notifies the insurer immediately he is advised of the deviation and agrees to any amended conditions and an additional premium, if required. A bill of lading or charterparty usually contains a deviation clause allowing the vessel to deviate without liability of the carrier to the cargo owner in respect of such deviation. |
| Dirty Bill of Lading |
See “Bill of Lading”. A bill of lading is labelled “dirty” when it is qualified by the carrier stating that the goods were not sound or were improperly packed when received by the carrier for carriage. |
| Discolouration |
Applicable to metal products. Synonymous with “rust”. |
| Displacement Tonnage |
See “Load Displacement” and “Light Displacement”. |
| Double Insurance |
Double insurance occurs when two or more policies are effected on the same interest and adventure so that the total sum insured exceeds the properly insurable amount. The assured may claim on either policy but he may not retain more than the properly allowable indemnity. |
| Draught |
The depth of water required to maintain a vessel afloat. May also be spelled “draft”. |
| Draught Marks |
Marks cut in the stem and sternpost of a ship. A mark is cut every 12 inches and the depth from the lowest point of the keel is indicated by 6 inch figures. |
| Dumb Barge |
A barge which has no means of propulsion. |
| Dunnage |
Timber or other means of packing used to separate cargo in stowage, thereby preventing damage during the voyage. |
| Duration of Cover – Cargo |
In the majority of cases goods are insured on a warehouse to warehouse basis. In general, cover attaches as the good leave the warehouse or place of storage at the place named in the policy and terminates when the goods are delivered to the final warehouse or place of storage at the place named in the policy. The goods are deemed to be insured on a ‘voyage’ basis, and, except for the period after discharge from the overseas vessel, there is no overall time limit to the cover. The basic cargo clauses apply a time limit of 60 days from midnight on the last day of discharge from the overseas vessel. In certain trades special clauses have been agreed, in which the point of attachment and termination may vary from the norm; further the time limit after discharge may, also, vary. Details regarding duration of cover are expressed in the ‘transit clause’ for both the basic cargo clauses and the various sets of trade clauses. Cover against war risks is restricted to the time during which the goods are waterborne; although this rule is relaxed a little during transhipment at an intermediate port or place. |
