| Ullage |
Trade ullage. Natural loss of liquid cargoes in transit. This is usually due to evaporation and occurs whether or not there is an accident. Since it is an inevitability, and not a risk, ullage is not covered by the policy and, therefore, the recognised percentage for ullage must be deducted from any claim based on the difference between shipped and arrived quantities. |
| UNCTAD |
United Nations Conference on Trade and Development. |
| Undeclared Cargo |
If a shipment has not been declared under an open cover or floating policy it may be declared later, even after loss, provided the failure to declare was an error made in good faith. If cargo is wilfully undeclared to the carrier no claim can be made by that cargo for general average, but the cargo must contribute towards any other general average payable. |
| Under-deck Shipments |
Goods not customarily carried on deck are always deemed by the insurer to be shipped under-deck unless the policy states that the goods are “on deck” or “over-deck”. Shipments are carried under-deck when in holds or spaces below the main deck. Goods carried in a lighter for under-deck shipment are deemed to be carried under deck. |
| Underinsurance |
When an insurance policy is effected for an amount which is less than the value at risk there is underinsurance. In the event of underinsurance the assured is deemed to be his owner insurer for the difference between the policy sum insured and the insurable value. |
| Underwrite |
To write a risk. An insurer writes, or underwrites, a risk when he accepts liability for any loss to the subject matter insured from an insured peril. |
| Unearned Premium |
Premium paid on risks in respect of which the property has never been exposed to peril so that the insurer could not have had any liability. |
| Unidentifiable Cargo |
The marks and labels on cargo must be sufficient to withstand the ordinary voyage and the carrier cannot be held liable for unidentification of cargo due to lack of marks. |
| Unit Carriage |
Method of carrying goods. The term embraces all methods whereby a number of packages are grouped into a single unit for handling, stowage and carriage; including containerisation and palletisation. |
| Unitisation |
The practice of placing several packages of goods into a single unit or container in order to expedite and make easier the loading, stowage and discharge of such goods. |
| Unstuffing |
The practice of removing goods from a container. Sometimes termed ‘stripping a container’. |
| Uplifting |
Increasing a premium by loading the rate. |
| Utmost Good Faith |
A contract of marine insurance is based on the utmost good faith, and, if the utmost good faith is not observed by either party, the contract may be avoided by the other party. |
