| TITLE |
DESCRIPTION |
| P & I |
Protection and Indemnity; Protecting and Indemnity. |
| P & I Club |
Protection and Indemnity club. |
| P & I Risks |
Protection and Indemnity risks. |
| Packing |
The wise shipper packages goods so that they will withstand the normal hazards to be contemplated in the toughest leg of the adventure. He should resist the temptation to skimp on the packaging to derive economic advantage. If he does so he cannot rely on his insurers to reimburse him for losses, because all cargo policies incorporate a clause which excludes loss, damage or expense caused by insufficiency or unsuitability of packing or preparation of the subject matter insured. The term ‘packing’. In this context, is deemed to include stowage in a container or liftvan when carried out by the assured or his servants, or when carried out prior to attachment of the insurance. |
| Packing – Inadequate |
See “Inadequate Packing of Goods”. |
| Pair and Set Clause |
This is not strictly a marine clause but is mentioned herein because art objects and jewellery are frequently insured in the marine market. Where an article is damaged or lost and the object is part of a pair or set the pair or set is ruined by such loss or damage and the assured may feel entitled to indemnity for the whole pair or set, requiring the insurer to take over whatever may remain. To obviate this the pair and set clause is incorporated into such insurances limiting the insurer’s liability to the insured value of the lost or damaged part or object only. |
| Pallet |
A platform made of wooden slats on which packages of goods can be stacked and fastened to make a single unit of carriage. The pallet is moved by forklift truck, thereby cutting out the hazards peculiar to manual handling. |
| Palletisation |
The use of pallets in the carriage of goods |
| Paramount Clause |
A Clause the provisions of which take precedence over any other conditions in the policy with which they are inconsistent. The war and strikes exclusion clause in a hull policy are so designated. |
| Partial Interest |
An insurable interest of part only of a full interest in the property at risk. A person having partial interest has the same insurance rights in respect of that part as he would have if he had an interest in the whole. |
| Partial Loss |
This is any loss of the subject matter insured not amounting to a total loss. If the assured brings an action for total loss an if it later proves only to be a partial loss the assured may still claim a partial loss. Goods arriving at destination with marks obliterated are the subject of a partial loss not a total loss claim. |
| Partial Loss of goods |
Any loss of goods caused by an insured peril and not resulting in a total loss is a partial loss of goods. It is customary for only valued policies to be used on goods and the amount recoverable from the insurer for partial loss is the percentage of depreciation applied to the insured value. |
| Particular Average |
The MIA, 1906, section 64(1) defines particular average as a partial loss of the subject matter insured, caused by a peril insured against, and which is not a general average loss. It does not include expenses incurred by or on behalf of the assured for the safety or preservation of the subject matter insured. In practice, the term is applied to any claim for damage to ship or cargo, other than damage caused by a general average sacrifice. It is never applied to a claim for total loss, even when it is a constructive total loss based on damage to ship or cargo. Particular average claims on hull policies are subject to the policy deductible. |
| Particular Charges |
An expense incurred by the assured, his agents or assigns to prevent or minimise a loss of the subject matter insured from an insured peril. Neither general average nor salvage charges are included in the term “Particular Charges”. |
| Perils of the Seas |
Only fortuitous accidents are embraced by this term. The ordinary action of wind and waves is not a peril of the seas. “Collision” and “stranding” are both perils of the seas, as, also, is “heavy weather”. Perils of the seas are embraced with ‘all risks’ as in the ICC(1982)A, but are not embraced within the other two sets of standard cargo clauses B and C; these covering only certain specified perils some of which are perils of the seas. The term ‘perils of the seas’ is extended in the 1983 hull clauses to embrace perils of ‘rivers, lakes and other navigable waters’. |
| Personal Effects |
Personal effects are not classed as goods when the are not shipped under a bill of lading. Personal effects are not called on to pay general average contribution. |
| Pilferage |
Petty theft without breaking open cases or boxes. It is usually difficult to prove that pilferage is the cause of shortage; for which reason it is customary, when adding this peril to a cargo policy, to include, also, theft and non-delivery. |
| Pirates |
The term ‘pirate’ has a variety of meanings, all of which can be summed up in the phrase ‘thief or robber’. In a marine insurance context it is intended to relate to persons who rob a vessel at sea. |
| Plimsoll Line |
See “Plimsoll Mark”. |
| Plimsoll Mark |
Named after Samuel Plimsoll, its instigator, this means the loadline mark on the side of a vessel. |
| Policy |
The formal contract between the insurer and the assured, whereby the insurer undertakes to settle claims properly recoverable in accordance with the conditions set out in the policy document. |
| Policy Assignment |
The transfer of beneficial rights in a policy from the assured to another party. The assured becomes the ‘assignor’ and the party to whom the policy is assigned becomes the ‘assignee’. |
| Policy Proof of Interest |
The assured under a policy must have an insurable interest at time of loss and he is obliged , if required, to prove this interest at the time he makes his claim. |
| Polish Register of Shipping |
See “Classification Clause” and “Polski Rejestr”. |
| Pollution |
Waste material which cannot be absorbed by the surroundings in which it is discharged. Waste can take many forms (e.g. liquid, solid, dust, radiation, odours etc). If the release of waste cannot be controlled pollution of air, water and soil can create a critical situation for the continuance of life in all forms. As a marine insurance peril underwriters may be asked to insure the risk of heavy liabilities imposed on shipowners following pollution of the seas and shores. |
| Polski Rejestr |
A Polish Classification Society. |
| Port of Call |
A port in the itinerary of a voyage where the vessel is entitled to call. A port of refuge is a port into which the vessel enters for safety, but which is not a port of call. |
| Port of Distress |
Same as “Port of Refuge”. |
| Port of Entry |
The port where the ship is entered by the Authorities into a Country or where goods pass through Customs. |
| Port of Refuge |
A port, other than a port of call, into which a vessel enters for safety. |
| Port of Registry |
Registration port of a ship. The name of the Port of Registry is always shown on the stern of the ship. |
| Port Risks Insurance |
In principle, this is a time policy by which a ship is insured whilst she remains within the confines of a specified port area. In practice, an alternative form of port risks insurance allows the ship to navigate outside the port area. |
| Premium |
The consideration, or sum of money, paid by the assured to the insurer in return for which the insurer agrees to indemnify the assured in the event of loss from an insured perils. The insurer is not bound to issue a policy until the premium is paid. |
| Prevention of Loss |
There would be reason for insurance if the assured were expected to prevent all loss from occurring to insured property. Nevertheless, there is a duty on the assured to such measures as are reasonable to prevent or mitigate loss. On receipt of advice that an accident has occurred, the insurer may take measures to mitigate or prevent further loss. In the absence of any provision to the contrary in the policy, such action might be construed as an admission of liability where notice of abandonment has been given as a precedent to a claim for constructive total loss. |
| Pro Rata |
In proportion. Pro rata cancellation is arrived at by calculating the proportion the unexpired part of the policy period bears to the whole period covered by the policy. This proportion is then applied to the policy premium. A pro rata additional premium is arrived at by a similar calculation. |
| Proof of Loss |
The onus is on the assured to prove that the loss has occurred, that it was caused by an insured peril and the extent of the loss. In principle, the assured must prove that the loss was proximately caused by an insured peril. |
| Putrefaction |
Putrification or deterioration. |
| Putrification |
Deterioration of perishable goods such as fruit. |
