| TITLE |
DESCRIPTION |
| O B/L |
Ocean bill of lading. |
| o/b |
On or before. |
| O/B |
On board. |
| O/C |
Off cover or open cover. |
| O/P |
Open Policy |
| O/S or o/s |
Outstanding. |
| Occurrence |
A chain of events which together form one happening. Example: - A ship collides with another, catches fire and sinks. The whole is one occurrence. If there are no contributing factors a single event may be termed an occurrence. |
| Off Risk |
When an insurer has been “on risk” in respect of an insurance and his liability has ceased he is said to be “off risk”. |
| Oil Damage |
Oil can seep into cargo packaging and cause damage or contamination which can seriously affect the contents. Except in the case of an ‘all risks’ policy, the standard cargo clauses do not cover such damage or contamination. |
| On Risk |
The insurer is “on risk” when an insurance attaches in respect of which he has written a line. |
| Onus of Proof of Claim |
The onus always lies with the claimant. The assured must prove his loss. The insurer defending a claim on the grounds of unseaworthiness must prove the unseaworthiness. The effect is that the person making the claim must prove his right to the claim and a person defending a claim must prove his grounds of defence. The onus is on the person whose property has been sacrificed in general average to claim contribution from the general average fund. |
| Open Cover |
A form of long term insurance contract whereby the insurer guarantees to accept risks when they are put forward by the assured as they arise during the period of the contract. The assured agrees to declare every item that falls within the scope of the cover and does not have the option to place such risk elsewhere should he consider it advantage-ous so to do. Thus, the open cover is an obligatory contract binding both parties to its terms, rates and conditions. |
| Open Policy |
A formal policy issued to give legal validity to a long term marine insurance contract such as a cargo open cover. In the absence of a formal policy, a marine insurance contract may not be recognised by a court of law. No premium is paid but a nominal premium amount or rate is specified in the policy to comply with the requirements of contract law. |
| Ordinary Loss |
See “Natural Loss”. |
| Ordinary Course of Transit |
See “Normal Course of Transit”. |
| Ordinary Loss in Weight or Volume |
In this context the word ‘ordinary’ relates to the dictionary definition , meaning ‘regular’ or ‘commonplace’. The term is used in cargo insurance in connection with cargo that may be subject to loss of volume during transit, such as liquid cargoes (e.g. oil, etc.), by reason of variations in temperature. Ordinary loss in weight can occur due to evaporation of moisture content in certain cargoes (e.g. grain) during the course of transit. The Institute cargo clause (1982) exclude ordinary loss in weight or volume. |
| Ordinary Wear and Tear |
See “Wear and Tear”. |
| Other Cargo |
The insurer is not liable for damage caused by the insured cargo to other cargo, unless the policy specifically incorporates this peril. |
| Out of Commission |
When a vessel is not required for the purpose for which it is intended it is usual for the owner to have it laid up, out of commission. |
| Outstanding Claims |
Claims which have been provisionally advised by the assured or reassured but which are in the process of investigation and so have not been settled. |
| Outturn |
In shipping this is the amount or weight of the cargo discharged from the ship. In insurance the expression may also refer to the condition of the cargo on discharge. |
| Outturn Report |
Report on the outturn of the ship. The report may be on the daily outturn figure or on the whole outturn. |
| Over Ship’s Rail |
The shipowner’s responsibility for the cargo attaches as loading commences and ceases when it is landed and free of tackle. |
| Overage |
A term used in respect of the additional premium payable on an open cover or policy when insured goods are carried by a vessel which dos not come within the scope of the provisions of the Institute Classification Clause. |
| Overcarriage |
When a carrier is unable to enter the intended port of discharge, or will be unable to discharge the goods at that port, he will, probably, carry the goods over to the next suitable port for discharge. When by so doing he is exercising a right granted to him under the contract of carriage, he has discharged his obligation to the cargo owner by such action and is not liable for any expenses incurred by the cargo owner to reship the goods back to the originally intended discharge port or to a port or place which would be more suitable for the assured. In fact, the carrier may even be entitled to demand extra freight for the overcarriage. |
| Over-deck |
Cargo which is not stowed underdeck on a ship; sometimes referred to as ‘on deck’. Where it is market practice for certain goods to be stowed on deck, they are deemed to be so carried on the ship. Otherwise, in the absence of agreement in the contract of carriage to the contrary, goods are deemed to be stowed underdeck. Accordingly, cargo insurers will rate a risk on the assumption that goods, other than those carried on deck by custom of trade, are being carried underdeck on the overseas vessel; except where they have been advised to the contrary. |
| Overinsurance |
See “Double Insurance”. |
| Oxidisation |
See “Rust”. |
