| TITLE |
DESCRIPTION |
| S.G. |
Since the abrogation of the S.G. form of marine policy in the London market, the meaning of this abbreviation is probably of little more than academic interest. The S.G. policy was designed, originally, to insure both the ship and goods in one insurance contract for a specified voyage only. Hence, the term means “Ship and Goods’. |
| S.R. & C.C. or s.r. & c.c. |
Strikes, riots and civil commotions. |
| S/I |
Sum insured. |
| Sacifice |
Usually a general average act. When a sacrifice is made of property involved in a maritime adventure for the purpose of preserving the whole adventure from an insured peril, such loss is recoverable under the policy as being a loss by that peril. The assured can recover the claim directly from his insurer without waiting for the general average adjustment to be completed. When the adjustment has been completed the underwriter is subrogated to the rights of the assured to recover the claim from the general average fund. Each party contributes rateable toward the fund in the proportion the saved value of this interest bears to the whole value saved by the general average act. |
| Safe Port |
This term applies not only to a port where a ship and/or cargo are protected from the hazards of the sea, but also where there is no likelihood of political interference. |
| Safely Landed |
Goods are “safely landed” when they have been landed in the customary manner within a reasonable time after arrival at the discharge port. |
| Sagging |
When a ship is supported at both ends but not in the middle. This can occur when a ship runs aground on rocks and the tide ebbs leaving her “sagging”. |
| Salvage |
An award payable to a third party for services rendered to preserve maritime property from peril at sea. Pure salvage is awarded only to a third party acting independently of contract and is payable only when the property has been saved. The award is based on the value of the property saved, the hazard and degree of skill involved and the expense of the operation. The contributory value for apportionment of salvage is calculated in the same way as for general average but the values are assessed at the place where the salvage operation is completed. The contributory value is compared with the insured value, as with general average, and any resultant undervaluation is reflected in a proportionate reduction in the contribution paid by the insurer. |
| Salvage and Recovery Clause |
A clause in a reinsurance treaty entitling the reinsurer to press for his share of any recovery obtained on the original insurance. |
| Salvage Association |
The Salvage Association was formed in 1856 by marine insurance and shipping interests in London. Its cumbersome former title “The Association for the Protection of Commercial Interests as respects Wrecked and Damaged Property” was discontinued when a new Royal Charter (Eliz. II) redefined the objects of the Association in 1971 and granted the title “Salvage Association”. |
| Salvage Tug |
A tug, often ocean-going, specially built and equipped for salvage work. |
| Salvor’s Lien |
When a salvor has salved property he has a lien on that property whereby he may retain the property until the salvage award has been settled. |
| Saving Human Life |
A ship may deviate to save human life on board or elsewhere without the assured being prejudiced, but the marine insurer has no liability in respect of such human life. |
| Scratching, Bruising and Denting |
Certain types of goods are susceptible to minor damage from these risks (e.g. Motor cars in transit). Insurer usually exclude claims for scratching, bruising and denting by an exclusion clause in policies covering such interests. Where no exclusion appears in the policy, the assured can claim for the damage provided he can show that it was caused by an insured peril. |
| Scuttling |
Opening sea cocks or letting in water deliberately to sink a ship. |
| SDR |
Special drawing right. |
| Seaworthiness |
There is an implied warranty in every voyage policy that the vessel is seaworthy at the commencement of the voyage. That is, the vessel must be reasonably fit in all respects, including the hull, equipment, stores, bunkers, crew and officers, to encounter the ordinary perils contemplated for the voyage. |
| Second Hand Machinery |
When machinery is insured as cargo it is deemed to be new machinery unless the policy specifically states that it is second hand. It is usual to incorporate the “Second Hand Replacement Clause” in a policy covering second hand machinery enabling the insurer to replace damaged parts with second hand material. |
| Second Hand Replacement Clause |
Used on policies covering second hand machinery as cargo. |
| Security |
The Insurer is the “security”. The term is used when referring to the Insurer in discussion. A group of Insurers may be embraced collectively by the one expression “security”. |
| Self Insured |
A risk undertaken by the assured himself, not placed with insurers elsewhere. |
| Seller’s Interest |
The insurable interest of the seller. The seller has such an interest only until the title to the goods passes to the buyer. The policy may be assigned by the seller to the buyer but assignment must take place before, or at the time, the seller’s interest ceases. Except where the conditions of sale imply assignment of the insurance contract (e.g. CIF), the seller cannot assign the policy after he has lost his insurable interest. |
| Service of Suit |
Instituting proceedings at law to purse an action against a party to settle a dispute. In the absence of any provision to the contrary, a suit can be served under any jurisdiction. |
| Settling Agent |
An agent authorised to pay claims under a policy. It is customary for the name and address of the settling agent to be specified in a marine policy where payment is permitted at any place other than the head office of the insurer. |
| SHINC |
Sundays and holidays included. |
| Shipped Bill of Lading |
As opposed to a “received for shipment” bill of lading, this document acknowledges that the goods have been shipped. The person sending the goods is entitled to demand a “shipped” bill of lading. |
| Shipper |
The consignor or sender of goods by ship. |
| Shipper’s Interest |
See “Seller’s Interest”. |
| Short Shipment |
A shipment where only part is loaded. The unloaded part is often termed “left out” or “shut out”. |
| Shortage |
Circumstances where goods are delivered to the consignee for less than should have been delivered. The term does not embrace non delivery of an entire package and is not embraced within the term ‘non-delivery (see “Non-Delivery”). In the case of shortage the loss is determined by a comparison between the shipped weight or volume and the delivered weight or volume, as appropriate to the type of cargo insured. In order to claim on the policy the assured must produce evidence of shipment and acceptable figures to show the amount of the shortage. |
| Shut Out |
Cargo which has not been loaded on the ship when she sails. (See “Short Shipment”.) |
| Singleton |
The term is used in the hull market to refer to an insurance covering a single ship, as opposed to a fleet insurance. |
| SKD |
Semi knocked down. A method of packing. |
| Sling Loss |
Loss of cargo by falling from slings when being loaded or discharged. This is generally a total loss of part. Sling losses are particularly prevalent in surf ports where discharge is carried out into lighters or small craft. The ICC (1982) B cover total loss of an entire package dropped or lost overboard during loading, transhipment or discharge. This cover is not provided by the C clauses. |
| Slinging |
The act of loading or discharging by slings. The trm also applies to the charge made for fitting slings. |
| Slings |
Chains or metal netting enclosing cargo in order that it may be hoisted onto or discharged from the ship. In some cases heavy rope netting is used. |
| Slop Barge |
A vessel designed to take waste oil and oily water from a tanker thus reducing the risk of pollution to the sea. The barge is equipped to separate oil from water, the latter being discharged into the sea. The waste oil is taken ashore for processing. |
| Slop Tank |
A tank in which waste oil and water is stored, in a tanker cleaning operation, for subsequent disposal. |
| Smoke Damage |
Damage caused to cargo by smoke would be covered by an ‘all risks’ policy and the ICC (1982) B & C both cover damage which is reasonably attributable to fire, which would embrace smoke damage. Nevertheless, the insurer always has the right to raise the perils excluded by the clauses in defence of the claim (e.g. smoke damage from a fire which was attributable to the wilful misconduct of the assured would not be covered). |
| Sound Value |
For the purpose of arriving at the amount due from the insurer in the event of partial loss of goods it is necessary to determine the sound value at the destination. |
| Special Drawing Right |
An IMF currency unit which was introduced by the 1979 Protocol to the Hague/Visby rules for limitation of liability. The Protocol was implemented in the UK by sections 2 and 3 of the Merchant Shipping Act, 1971, but these sections were not given force of law until February 1984. When the SDR unit came into force it replaced the ‘gold franc’ as a unit for calculating currency equivalents for assessment of liability limitations. International law specifies the limits of liability of shipowners and others in SDRs; thereby providing a common basis for determining the limits. In each case the relevant currency equivalent of the SDR is determined in accordance with the financial press and/or bank information on a daily basis, to establish the actual limit of liability in the local currency. |
| Specie |
The term specie is used in two completely separate ways in marine insurance. The Marine Insurance Act 1906 refers to “specie” in the expression “loss of specie” . The term “specie” is also used as a collective noun to embrace all forms of valuables carried as cargo, including precious metals, gems, money, banknotes and valuable documents. |
| Spontaneous Combustion |
May occur when fibrous cargoes, such as jute, are loaded in a damp condition or when such cargoes contain an excessive amount of oil or grease, as may be the case with baled dirty wool. Soft coal, or lignite, is also liable to spontaneous combustion if loaded wet. |
| Spotting |
Mildew or staining on soft leather goods, such as gloves, due to damp. |
| Spotting Clause |
A clause used on policies covering soft leather goods such as gloves. The clause excludes claims due to spotting or staining unless caused by the vessel being stranded, sunk or burnt. |
| Steamer |
A ship operated by steam propulsion. In marine cargo practice it is customary to use the term for all types of self propelled vessels. |
| Stevedore |
A contactor for labour at a port of loading and discharge. |
| Stoppage in Transitu |
When a seller of goods finds that payment is unlikely and the goods are already en route to the buyer he has the right of “stoppage in transitu”. By this right the seller can stop the delivery of the goods at destination. The right is extinguished if the voyage is ended or if the goods have already been sold by the buyer to another person. |
| Stowage Plan |
Plan of ship showing how cargo is stowed. This is important when planning the unloading of the cargo. |
| Stranding |
The term doe not include bumping over a bar, a mere touch and go or a grounding by reason of the rise and fall of the tide. The vessel must be hard and fast for an appreciable period of time. |
| Strikes Clause |
A set of clauses, published by the Institute of London underwriters, for attachment to cargo policies covering strikes, riots, civil commotions, etc. |
| Strikes, Riots and Civil Commotions |
It has been the practice for many years for insurers t exclude these risks from marine policies, both hull and cargo. A variety of exclusion clauses have been used for this purpose. In the mind of the marine practitioner strikes etc. risks are alligned with war risks, which are also subject to standard exclusion clauses in marine policies. Both cargo and hull insurers are prepared to accept, subject to an appropriate premium, proposals to cover loss or damage to insured property caused by strikes and persons taking part in labour disturbances, riots or civil commotions; but circumstances dictate different methods. |
| Stuffing a Container |
Filling a container with cargo. |
| Subject Matter Insured |
The subject matter exposed to risk to which the assured’s insurable interest attaches. In a cargo policy this would be the “goods”. In a hull policy it would be the “ship and machinery”. In a freight policy, the “freight”. In a policy the subject matter must be designated with reasonable certainty so that it is readily identifiable. |
| Subrogation |
The right of the insurer to any remedies which the assured may have against third parties wholly or partly responsible for the loss in respect of which a claim has been paid. Under subrogation rights the insurer is entitled to any recovery obtained by the assured and any recovery which he himself may obtain in the assured’s name. The maximum amount to which the insurer is entitled under his subrogation rights is the amount of the claim paid., Any amount in excess of the claim which the insurer may recover must be paid to the assured. |
| Subrogation Form |
A form of subrogation. A standard form used to obtain the agreement of the assured to the insurer pressing a claim for recovering from a third party which claim would normally be made by the assured. The insurer automatically has rights of subrogation by statue without the form., but it is often more satisfactory to obtain the form of subrogation before pressing a claim, since it obviates the necessity of proving subrogation rights. |
| Sue and Labour Charges |
Expenses incurred by the assured, their servants or agents, pursuant to the ‘duty of the assured’ clause in a hull or cargo policy. These are recoverable under the policy insofar as they are reasonably and properly incurred, provided the measures taken by the assured, etc. were intended to prevent loss or damage to the subject matter insured by a peril insured against, and were not part of a salvage or GA act. |
| Sum Assured |
Sum insured. |
| Sum Insured |
The maximum amount of liability of the insurer under the policy. The measure of indemnity for total loss. The sum insured by a policy is the total of the signed lines (if more than one) in that policy. Usually the sum insured is for the same amount as the insured value but where it is for a smaller amount all claims paid by the insurer, whether partial or total loss, are reduced in the same proportion. The premium rate is applied to the sum insured to determine the policy premium. Return premiums are calculated in the same manner. |
| Supercargo |
A superintendent of cargo who travels with the ship. |
| Survey Fee |
The fee payable to a surveyor for his services in carrying out a survey and issuing a survey report. Primarily the payment of the survey fee is the responsibility of the assured because it is part of the assured’s expense in proving the loss. |
| Sweat Damage |
Changing temperatures cause the ship’s plates in the holds to “sweat”. That is, condensation forms on the inside of the holds and can cause damage to baled cargoes and to their cargoes vulnerable to water damage. Sweating is particularly likely to occur when the ship in a humid climate encounters heavy weather so that hatches are battened down and ventilators closed. It is, however, best to leave ventilators closed for cargos which do not need ventilation, such as manufactured metal goods, because warm moist outer air drawn in through the ventilators will condense on the cold surface of the cargo in the cool hold and may result in sweat damage. Sweat damage is not covered by the ICC (1982) B or C. |
