| TITLE |
DESCRIPTION |
| I.C.C. |
Institute Cargo Clauses; International Chamber of Commerce. |
| Implied Condition |
A condition that does not appear in the policy but which is understood to be incorporated therein and is equally binding as though it were expressed in the policy. |
| Implied Warranty |
A warranty that is not expressed in the policy specifically but which is understood by both parties to be incorporated in the contract. |
| In Force |
A policy or contract is in force from the time it has been accepted by the insurer to the time it expires or is cancelled. |
| In transitu |
In transit, applies to goods during the voyage. |
| Inadequate Packing |
Goods should be packed adequately to withstand the normal hazards to be encountered in the contemplated transit. It is the consignor who decides the method of packing in most cases, although the insurer may influence the decision with an express warranty requiring that the goods be packed professionally. The cargo insurer does not intend to cover loss of or damage to the goods caused by inadequate packing and, to reinforce this intention, the ICC A, B & C all incorporate an exclusion clause, which states that the insurance does not cover loss, damage or expense cause by insufficiency or unsuitability of packing or preparation of the subject matter insured. Improper stowage in a container, or lift van, is deemed to be inadequate packing, in practice, and this is, also, affected by the exclusion clause, but only if the stowage is carried out prior to attachment of cover or by the assured or their servants. |
| Inception of the policy |
The time when the insurance comes into force. |
| Inchmaree Clause |
In the case of Thames & Mersey Marine Ins. Co. Ltd. v Hamilton, Fraser & Co., 1887, it was held that the S.G. policy did not incorporate the peril ‘negligence’. The vessel involved was called the ‘Inchmaree’ and when a new clause was introduced to hull policies, following the court decision, to extend cover to incorporate negligence of master officers or crew the clause became known as the Inchmaree clause. For nearly 100 years this clause was an integral part of the clauses used in hull policies. During this time it was amended several times, mostly to add further perils as the need to cover additional perils arose, so that it became alternatively referred to as the ‘negligence’ clause or the ‘additional perils’ clause. It was withdrawn as a separate clause when the 1983 hull clauses were drafted for use with the MAR form of policy. Such parts of the Inchmaree clause that were retained were incorporated in the ‘risks’ clause in the new hull clauses. |
| INCOTERMS |
A set of international rules for the interpretation of terms used in overseas trading. The rules were first introduced by the International Chamber of Commerce in 1936 and were updated in 1953 and again in 1980. Their use is optional, but incorporation of the rules in a trading contract reduces misunderstandings which can arise in interpretation of the terms in the contract. |
| Increased Value (Cargo) |
The value expressed in a policy of marine insurance is conclusive between the insurer and assured whether it is correct or not. It is the duty of the assured to advise an insured value which is as near as it is possible to estimate that the actual gross arrived sound value will be. When goods are sold after the insurance has attached they are generally insured for the price the seller expected to get at destination. The buyer, naturally, expects to obtain more for the goods than he paid for them and so the insured value based on the seller’s price is probably lower than the arrived value is estimated by the buyer to be. In such cases the buyer will wish to insure for the excess over the existing value to the increased value for the cargo. It is customary for the buyer to insure for an additional amount on the same terms as the existing policy and it is generally more convenient to arrange for an increase in the insured value on that policy. |
| Increased Value Clause – Cargo |
The ‘increased value’ clause appear in all sets of Institute Cargo Clauses used for attachment to the MAR form of policy. These include the ICC (1983) A, B & C and all sets of trade clauses based on any of these. The effect of the clause is to increase the insured value in the policy by aggregating it with the insured value in the other policy; thereby making the sum insured in each policy a proportion of the full value insured and reducing the insurer’s liability under the policy in proportion to the under insurance indicated by comparing the sum insured with the aggregated insured value. |
| Indemnity |
The making good of a loss to the assured by financial payment. It does not include any profit to the assured in its pure sense but may, in practice, embrace some profit by agreement as in the case of cargo “valued policies”. |
| Indirect Damage |
Damage caused indirectly by a peril insured against but not proximately caused by such peril. |
| Inevitable Accident |
Where an accident occurs and no fault can be attributed to any of the parties involved. No liability therefore attaches to the assured concerned, nor has he any claim on the other party. |
| Inevitable Loss |
A loss which must happen and which is not dependent on a fortuity. This is not an insured peril, nor can it be a general average loss. |
| Infestation |
Infested with vermin. Unless the policy specifically includes this risk it is excluded from the policy. |
| Inherent Vice |
A quality inherent in the nature of goods which results in inevitable loss of or damage to the goods in certain circumstances. Spontaneous combustion is a form of inherent vice. |
| Initial Premium |
A deposit premium. A premium paid at inception of the insurance with the intention of adjustment to the correct premium later. |
| Inland Marine |
Inland marine is one of these categories and embraces river, canal and inland water risks of small craft, barges, also piers, wharves, bridges and similar items incidental thereto. In the American market the inland marine risks extend to such insurances as “horse and wagon” and others which have no connection with marine business at all. The marine market usually writes inland marine risks, some of which come under incidental non-marine business. |
| Inst. Class. |
Institute Classification Clause (Cargo). |
| Institute Cargo Clauses – Air |
This set of clauses (C1.259 1/1/82) was introduced by the ILU for use only with the MAR form of policy. For outline cover one should refer to the entry under the heading ‘Air Cargo Clauses’. The air cargo form of policy have been withdrawn by the ILU. |
| Institute Cargo Clauses A |
This set of standard cargo clauses (C1.252 1/1/82) was published by the Institute of London Underwriters for attachment to the MAR form of policy only. In practice it is referred to as the ICC (1982) A and is used in circumstances where the insurer and assured agree to ‘all risks’ conditions in a cargo insurance contract. |
| Institute Cargo Clauses B |
This set of clauses (C1.253 1/1/82) was introduced by the ILU for use only with the MAR form of policy. There is no equivalent set of clauses for use with the S.G. form of policy. In practice, they are referred to as the ICC(1982) B. |
| Institute Cargo Clauses C |
This set of clauses (C1.254 1/1/82) was introduced by the ILU for use only with the MAR form of policy. There is no equivalent set of clauses for use with the S.G. form of policy. The clauses are available as an alternative to the ICC(1982) B, on which they are based. They are identical to the B clauses, except in the case of the specified perils covered under clause 1, some of the perils in the B clauses being omitted from the C clauses. The omitted perils relate to earthquake and volcanic eruption, loss or damage by water, loss overboard and sling losses. |
| Institute Classification Clause |
See “Classification Clause”. |
| Insurable Interest |
English law prohibits any person from entering into a contract of marine insurance where the proposer has no insurable interest in the adventure to be insured, nor any reasonable expectation of acquiring such interest. An ‘insurable interest’ means that the proposer must stand to lose something if the property at risk is lost, damaged or detained or he may incur a liability in respect of the property or suffer because it fails to arrive on time. |
| Insured Peril |
A marine insurance policy covers losses proximately caused by the perils insured by the policy (some cargo clauses express perils in respect of which the assured need only prove that the loss was reasonably attributable thereto for a claim to succeed). An insured peril may be specifically expressed in the policy or be embraced in a general description, such as ‘all risks’. A peril which is not embraced within the policy conditions is termed an ‘uninsured’ peril. |
| Insured Value |
The value expressed in a policy as an agreed value for insurance purposes. The MIA (1906) section 27 provides that the value so specified in a marine insurance policy is, in the absence of fraud, conclusive between insurer and assured of the insurable value of the property insured. |
| Interest |
The relationship of the assured to the subject matter of the insurance; whereby the assured may suffer loss or incur liability in the event that the subject matter is lost or damaged. |
| Interruption of Voyage |
The ICC(1983) provide that, where the goods are discharged at an intermediate port or place, and the contract of carriage is terminated, the cargo insurance cover, also, terminates at the same time. |
| Inure |
To come into use or effect, or to serve for one’s use or benefit. |
| Irrevocable Letter of Credit |
A letter of credit whereby the issuing bank undertakes the obligation of the buyer to the seller to settle the debt express therein, subject to the seller fulfilling certain specified conditions and subject to confirmation by the buyer. |
