| TITLE |
DESCRIPTION |
| R.D.C. |
Running down clause. |
| R.O.D. |
Rust, oxidisation and discoloration. |
| Radioactive Contamination |
The introduction of radioactivity onto, or into, cargoes or hulls by radiation escaping from some radioactive substance which may be carried by the vessel as cargo or fuel. Radio isotopes, radioactive ores, irradiated and non-irradiated nuclear fuel, radioactive waste and by-products are all carried by vessels occasionally in present day commerce. The insurer’s liability for radioactive contamination is the same as that for any other form of contamination. Shipowner’s liability may be involved where the contamination is caused by negligence, faulty stowage or breakdown of nuclear installations. |
| Rate |
Rate of premium. The percentage which will be applied to the sum insured to assess the premium. |
| Received Bill of Lading |
The bill of lading is prima facie evidence of receipt of the goods by the carrier for shipment. A “received” bill of lading does no more than this and does not acknowledge that the goods have been shipped. A “shipped “ bill of lading acknowledges shipment. |
| Recovery |
Amount of money recovered from a third party by an insurer under his subrogation rights. |
| Recovery Agent |
A person who specialises in obtaining recoveries from third parties and others. Generally, the term is used in connection with recoveries from carriers by cargo owners or cargo underwriters. |
| Recovery from a Carrier |
When a cargo insurer has settled a claim for goods which have been delivered to the consignee by the carrier in a damaged condition, or which have not been delivered, he is subrogated to all legal rights and remedies the assured has against the carrier in respect of the loss. In practice, these rights may be prejudiced if the assured does not carry out certain steps to preserve the rights. To preserve his subrogation rights, the insurer inserts various relevant clauses in is cargo policy. The ‘duty of the assured’ clause in the ICC requires the assured to ensure that all rights against carriers are preserved. The ‘red line’ clause (more commonly referred to as the ‘important’ clause) is usually attached to cargo policies and certificates to emphasise the measures the assured should take to ensure that claims against carriers are not time barred. When exercising his subrogation rights an insurer may recover more than the claim paid. If this is the case, he can retain only up to the amount of the claim. The excess amount recovered must be passed on to the assured. |
| Red Line Clause |
In practice today this clause is more commonly referred to as the ‘Important clause’ because it bear s the word IMPORTANT at its head. The clause is used in cargo policies and certificates; more particularly in the latter. To attract the attention of the assured and their assigns to its importance it is printed in red; although the colour of the ink does not give it any precedence in the construction of the policy (see “Rules of Precedence”). The main purpose of the clause is to remind the assured of the need to take certain measures when goods are delivered damaged, or are not delivered when they should have been, to comply with the requirements of the law in establishing a claim against the carrier or the port authority, as the case may be. A claim must be made in writing without delay and, in any case, within the time allowed by law for such claims. |
| Reefer |
Refrigerated vessel or refrigerated space. |
| Reefer Ship |
A ship with refrigerate space for cargo. |
| Refrigerated Cargoes |
Perishable cargoes carried in refrigerated holds or refrigerated containers. Where the cargo is not in refrigerated containers it may be necessary to gradually raise the temperature from approximately 24 hours prior to discharge to enable handling of the cargo. It is important that the refrigeration temperature is kept even throughout the voyage or deterioration of the goods is expedited. |
| Refrigerated Tonnage |
Charges in respect of the use of canals and similar are based on a ship’s net registered tonnage. The tonnage is found by calculating the cargo carrying capacity of the ship in cubic tons at 100 cubic ft. per ton or at 1,000 cubic centimetres per ton if based on metric tons. The gross tonnage of the ship is arrived at by taking into account the whole area inside the hull and the net registered tonnage is calculated by deducting certain specified spaces from the gross tonnage. These spaces include engine room space, crew’s quarters, space used in navigating and operating the vessel, light and air spaces, locker rooms and similar. An open shelter deck is not included in the net registered tonnage but a permanently closed shelter deck is. |
| Registered of Shipping of the U.S.S.R. |
This Soviet Union Classification Society is listed in the Institute Classification Clause. |
| Registro Italiano |
This Italian Classification Society is listed in the Institute Classification Clause. |
| Reinsurance |
When an insurer accepts a line on a slip he becomes liable for a loss under the insurance contemplated by the slip. This places him in the position of being able to lose financially in the event of loss of or damage to the insured property, so that he has an insurable interest in respect of his liability. This liability he may reinsure with another insurer or several insurers who become his reinsurers. No insurer may reinsure for more than his liability nor on wider terms. |
| Rejection of Abandonment |
See “Notice of Abandonment”. |
| Rejection Risk |
Under the U.S. Pure Foods and Drugs laws standards are imposed on the import of foodstuffs, which are rejected if they do not conform with the minimum standard required. Rejected goods must be returned to the country of origin, shipped elsewhere or destroyed. Rejection risk insurance reimburses the assured for his loss in this respect. |
| Remedy Against Third Parties |
See “Subrogation”. |
| Removal of Wreck |
When a vessel is sunk in the fairway, in a harbour or in some other place where it is a danger to shipping the Authorities have the right to mark, light, buoy or even to destroy it, if the owner dos not remove the wreck, and to charge the owner of the vessel with the cost thereof. Except where the policy cover P & I risks the hull insurer is not liable for the expense of removal of the wreck of the insured vessel unless he has taken over proprietary rights on having paid a total loss. Insurers do not cover the assured’s liability for removal of wreck following collision , this being a P & I risk. |
| Renewal |
The practice of renewing an insurance which is due to expire. Renewal depends on the claims experience on the expiring insurance and the insurer may decline the renewal, increase the premium or insert special conditions if the experience is poor. On the other hand, if the experience is exceptionally good he will usually renew and may agree to a relaxation of conditions or a reduction in rate. |
| Repacking |
Where goods are damaged by an insured peril it may be possible to minimise the loss by reconditioning and/or repacking the goods. In such cases where the repacking follows damage recoverable from the insurer, the cost of repacking is also paid by the insurer. Repacking short of destination is an expense to prevent loss and is recoverable from the insurer as a sue and labour charge. It may occur that the packing alone is damaged and repacking at destination is necessary to enable the goods to be sold. This repacking is not recoverable from underwriters. |
| Replacement Clause |
Used mainly in insurances on machinery as cargo, the clause provides that in respect of damage the insurer’s liability shall be limited to replacing and fitting the broken part. This prevents the assured from claiming an actual total loss on the grounds of “loss of speci”. Such a claim being based on the assured’s contention that he is unable to use the machine for the purpose for which it was intended. |
| Replacement of Machinery |
This refers to machinery as cargo. |
| Representation |
A statement of fact, belief or expectation made by the assured and/or his broker to the insurer when placing the insurance. A material representation is one which would affect a prudent insurer in deciding whether to accept, decline or how to rate the risk. What is material is a question of fact. A material representation must be substantially true or the insurer may avoid the contract. |
| Requisition |
Refers to circumstances where the insured ship is taken over by military or other authority under powers granted by a State. Requisition can be for ‘title’ in which case the requisition is probably compulsory and the ship is not returned to the owner, but compensation s usually paid. |
| Res Nullius |
Nobody’s responsibility. |
| Respondentia |
An insurable interest which a lender of money has in respect of a loan to the master of a vessel to enable the vessel to continue the voyage. In respondentia the security lies in the cargo. It is practically only of academic interest today. |
| Retrospective |
Taking into account what has gone before. This term is to be found mainly in reinsurance in circumstances where the reinsurer’s liability attaches some time after the original insurer’s liability. |
| Reversible Lay Days |
The days permitted for loading a cargo are termed “lay days”. The same applies to discharge of cargo. If a total number of days is allowed which can be used for both without distinction, such lay days are called “reversible”. |
| Revocable Letter of Credit |
A letter of credit which contains terms that can be altered or amended by the importer or his bank without the consent or knowledge of the exporter. To avoid this disadvantage, it is customary for an exporter to insist on an irrevocable letter of credit. |
| Right of Contribution |
If there is double insurance each insurer is liable to contribute rateably to the loss in the proportion that the amount insured under his policy bears to the whole amount insured. |
| Rights of Carrier |
The rights and immunities of carriers are periodically reviewed at international conferences as changing developments in world trade demand their reconsideration. The rules agreed at the convention of 1968 (known as the Hague/Visby rules) are the most recent to receive ratification. |
| Rights of Recovery – Insurer |
Where an insurer settles a loss under a marine insurance contract he is entitled to take over the rights of the assured against any third party who was legally responsible for the loss which resulted in the claim. The insurer’s rights do not extend beyond the amount of the claim paid. The insurer has the first right of recovery; the assured only enjoying such part of the recovery as remains after the insurer’s rights of recovery have been satisfied. |
| Rights of Subrogation |
See “Subrogation”. |
| Riot |
The peril ‘riots’ is specifically excluded from the standard hull and cargo marine insurance conditions. However, the marine cargo policy can be extended, at the request of the assured, to embrace riots along with strikes risks. The hull market will, also, entertain cover for riots in a war & strikes risks policy. |
| Risk |
A fortuity. Something which may happen but not something which must happen. Does not include an inevitability. |
| Risks Clause – Cargo |
The clause in the ICC (1982) to which one should refer to find the perils covered by the insurance contract. In the A clauses the embracing term ‘all risks’ is used, but in the B & C clauses the perils are individually expressed. The perils in the C risks clauses are less in number than those expressed in the B risks clauses; but in both cases the perils are specified in two groups. The first group is not subject to the principle of proximate cause; the assured needing to show only that the loss was reasonably attributable to the peril for the claim to succeed. In the case of the second group the assured must show that the loss was proximately caused by the specified peril for a claim to succeed. A similar clause appears in the various Institute trade clauses, following the pattern of the A, B or C clauses, as appropriate to the particular type of cover. |
| Ro Ro |
Abbreviation for “Roll on, roll off vessel”. |
| Roll on Roll off Vessel |
A ship designed with side, and/or rear and/or bow entrances each with a “let down” ramp which enables vehicles to drive into and out of the ship. |
| Rules of Precedence |
These rules are used in law when there is inconsistency between policy wordings, clauses or conditions, to establish which shall take precedence over another. The rules are in two parts. Part one deals with the form of wording and gives precedence to handwritten wording over typed wording, and to typed wording over printed wording. No precedence is allowed to bold printing, italicised printing or coloured printing over any other form of printing. The second part is concerned with the way in which the policy is constructed. An attached clause takes precedence over a marginal clause (i.e. a clause which appears in the margin at the side of the body of the policy documents), which, in turn, takes precedence over the wording expressed in the body of the policy. |
| Run Off |
Applicable to long term contracts such as treaties. When the contract has been cancelled there after often many risks which attached before the cancellation became effective, particularly time risks, which still have to be “run off”. That is, the insurance or reinsurance remains in force in respect of those risks until they have “run off”. |
| Running Days |
Connected with loading or unloading cargo. Consecutive days, but excluding Sundays and holidays. |
| Running Down Clause |
Another name for the “Collision Clause”. |
| Russian Register of Shipping |
See “Register of Shipping of the U.S.S.R.”. |
| Rust |
Not covered by the policy unless specified. A policy covering “All Risks” would cover damage to or loss of an article due to rust proximately caused by an insured peril, such as immersion in seawater. |
