Complete Glossary of
Marine Terms & Abbreviations
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Packing List
these are detailed inventories of all the physical component elements of the cargo packed for shipment. The packing list:
- is a check list for the seller when packing, and the buyer when unpacking
- assists customs when identifying the goods and performing inspections
- (may) give the specific weights of individual packages
Pairs And Sets Clause
This is not strictly a marine clause. However, art objects and jewellery are frequently insured in the marine market. It is a common clause in household removal contracts.
Where an article is damaged or lost and the object is part of a 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.
Examples of pairs and sets are matching candlesticks, and sofa & armchair sets. In the case of the latter and water / knife damage in unpacking, the insurer's liability is strictly limited to recovering one chair, and not the whole set.
Partial Loss
The MIA states the basis for claims for partial loss. Where the whole or any part of the goods have been delivered damaged at destination, the measure of indemnity is such proportion of the sum fixed by the policy as the difference between the gross sound and damaged values at the place of arrival bears to the gross sound value.
Particular Average
A particular loss caused by marine perils, other than a General Average loss.
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". Particular charges are not particular average and cannot be added to attain the franchise, if any.
Sue and Labour charges are a form of particular charge but are not referred to as such in practice because it is customary to use the term "Particular Charges" to apply only to charges at destination.
This is an important difference because charges at destination are merely a means of assessing loss rather than preventing loss, so that there can be no question of the insurer paying particular charges at destination following a total loss, as there could be with Sue and Labour charges. Of the two, only Sue and Labour charges are recoverable from the insurer if there is no loss, particular charges not being recoverable unless there is a claim under the policy.
Particular Charges, Sue And Labour Expenses And Extra Charges
In addition to total and partial losses, underwriters settle salvage losses, particular charges, sue and labour expenses and extra charges.
Particular charges include extra charges and sue and labour expenses and difficulty can often be experienced when distinguishing between them. These are expenses incurred by or on behalf of the assured for the safety or preservation of the subject-matter insured other than general average expenditure or salvage (M.I.A. s64)
A particular average loss is a partial loss of the subject-matter insured, which is caused by a peril insured against, and which is not a general average loss
Expenses incurred by or on behalf of the assured for the safety or preservation of the subject-matter insured, other than general average and salvage charges, are called particular average charges. Particular charges are not included in particular average.
Basically, Sue and Labour charges are incurred short of destination and particular charges are incurred at destination.
Apart from this, the major difference between them is that sue and labour charges can be recovered in addition to a total loss but particular charges are added to the claim and the total sum is limited to the insured value.
Examples of such charges are:
- sorting sound cargo from damaged cargo,
- dry cleaning and repacking wet damaged clothing,
- fumigating infested cocoa beans, and
- repacking machinery at an intermediate port.
Partlow Chart
Circular paper disc recording chart for refrigeration temperatures, used on refrigerated containers.
Parturient
In labour. Applicable to livestock insurance and related to pregnancy.
Pax
Passengers (Aviation)
Percentage Of Depreciation
Generally this term applies to claims on goods only, because the measure of indemnity for partial loss of ship is the reasonable cost of repairs regardless of the insured value of the ship. The percentage of depreciation is the percentage which is applied to the insured value on a cargo policy to ascertain the claim for partial loss. It is arrived at by comparing the gross arrived damaged value of the goods with the estimated gross arrived sound value, the difference being applied to the estimated gross arrived sound value as a percentage. In some cases the surveyor may assess the percentage of depreciation to be applied.
Perfecting the Sight
Adding necessary details of the bill of lading when such had been previously omitted.
Perils of the Sea
Hazards arising on navigable waters through natural forces such as abnor¬mally heavy seas, high winds, etc.
Pilferage
Theft of the contents, in whole or in part, of a shipping package.
Pirates
Persons attacking property whilst outside the jurisdiction of any state, and owing allegiance to no recognised flag, but the term includes passengers who mutiny and rioters attacking a ship from the shore. A pirate acts for his own personal gain and not for political ends.
Piracy
An assault on a vessel, cargo, crew or passengers at sea by persons owing no allegiance to a recognised flag and acting for personal gain.
It also includes acts of rioters who attack a ship from the shore and of passengers who mutiny. This peril, along with war perils, was excluded from the SC policy by the F.C. & S. clause; to be reinstated if the agreed policy conditions covered war risks. Thus, for many years piracy was related to war risks.
The 1982 cargo war clauses do not cover piracy, and it is not embraced within the risks covered by the B or C cargo clauses.
The 1983 hull clauses incorporate piracy among the risks covered by the standard marine clauses; piracy not being included in the war risks cover (1983).
PLC
Public limited company
Plimsoll Mark
The loading mark on the side of a vessel.
The draught of a vessel is the vertical distance from the keel to the waterline. The maximum permitted draught varies according to the seasons and waters in which she plies. The markings are given above, and all ships should be loaded so that the loadline corresponding to the zone in which they are steaming must not be submerged. The seasons to which the markings apply are Tropical (T), Summer (S), Winter (W) and Winter North Atlantic (WNA). The LR in the above diagram denotes "Lloyd's Register".
The world has been mapped off into sections showing where those sections apply. These are broadly detailed below:
Summer Virginia to Tarifa, South Coast of Cuba and Costa Blanco, Yokohama to Prince Rupert and Hong Kong and Philip-pine Islands to California
Tropical Venezuela to Costa Blanco and Rio de Janiero to Walvis Bay, Somalia through Saigon to Guatemala and Diego Suarez through Darwin to Coquimbo
Summer All areas between the lower line of the foregoing tropical area down to a line passing through Bahia Blanca, Cape Town, Durban, Launceston, Dunedin and Valparaiso
It must be appreciated that some areas change from summer to winter with different dates applying.
Given below is the seasonal winter situation:
Bergen to Greenland including the centre of the North Atlantic; Prince Rupert and the North Pacific to Yokohama - winter loadlines apply from 16th October to 15th April and summer loadlines from 16th April to 15th October.
All areas below the line between Bahia Blanca, Cape Town, Durban, Launceston, Dunedin and Valporaiso - winter loadlines apply from 16th April to 15th October, and summer loadlines from 16th October to 15th April.
Continent Baltic and North Atlantic - winter loadlines from 1st November to 31st March and summer loadlines from 1st April to 31st October.
Mediterranean and Black Sea - winter loadlines from 16th Dec-ember to 15th March and summer loadlines from 16th March to 15th December.
Sea of Japan - summer loadlines from 1st March to 30th Nov-ember and winter loadlines from 1st December to 28th/29th February.
Seasonal Tropical (Arabian Sea - above Muscat and Karachi) - tropical loadlines from 1st August to 20th May; summer load-lines from 21st May to 31st July.
Arabian sea, below Muscat and Karachi to a line from Somaliland to Colombo - tropical loadlines from 1st December to 20th May; summer loadlines from 21st May to 15th September. Tropical loadlines from 16th September to 15th October; Summer loadlines from 16th October to 30th November.
Bay of Bengal - tropical loadlines from 16th December to 15th April and summer loadlines from 16th April to 15th December.
China sea - tropical loadlines from 16th December to 15th April and summer loadlines from 1st May to 20th January. The foregoing regulations/zones must be strictly followed as vessels are not permitted to operate submerged above their seasonal loadline marking. Alterations in the zones are made by the timber cargo regulations.
Freeboard is the distance measured amidships from the water line to the main deck of a vessel. This is normally the uppermost continuous deck in a ship with one or more decks. However, in a shelter deck vessel it would be the next deck below.
POA - Place of Acceptance
Where the goods are received for transit and Carrier's liability commences.
Now more usually called a POR.
POD
Place of Delivery - Where goods are delivered and Carrier's liability ceases.
or
Proof of Delivery - A signed receipt acknowledging delivery.
Poincaré Franc
Fictitious gold franc originally used amongst other things to assess Carrier's liability in an inflation -proofed manner in Hague Visby Rules. Now largely replaced by SDRs.
Point
point = a measure of direction (one point = 11¼ degrees of arc) Also: a headland, jutting into the sea
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.
Pollution Hazard Clause
A clause in a hull policy, whereby underwriters cover deliberate damage or loss to the ship caused by Governmental authority in attempts to mitigate a threat of pollution hazard; where such relates to loss or damage to the ship and where it has not resulted from a want of due diligence on the part of the assured, owners or managers of the ship.
POR - Place of Receipt
Where the goods are received for transit and Carrier's liability commences.
Port Blockage
Stand alone cover that provides a loss of revenue cover for Port Authorities following the seaward full or partial blockage of access to the port or facilities, generally by wreck or natural disasters.
Portage Bill
A bill giving the statement of wages of each member of the crew at the end of a voyage. Power of Attorney: A (locument which empowers one person to act for another.
Porthole Container
Insulated container for carrying refrigerated produce, that is reliant on an external source of cold air.
Pratique
When a vessel is about to make direct contact with a port it is necessary for a medical officer to ensure that the ship has a clean bill of health and that quarantine regulations have been observed. The “Pratique” is the permit issued after the medical officer has been satisfied, following which the vessel may contact the port.
Prepaid Freight
Freight paid by the shipper to the carrier when merchandise is accepted for shipment. Not refundable even if the merchandise does not arrive at the intended destination.
Press
to press: to force a tank to overflow by using a pump
Prime Cost
In the Marine Insurance Act, refers to the invoice price at the port of loading
Proof Of Loss
The onus to prove loss rests with the assured, who must also prove the loss was caused by an insured peril. If the insurer does not agree the onus to prove that the loss was caused by an uninsured peril rests with the insurer.
A sworn statement by the assured giving details of the loss is also called "Proof of Loss". This is seldom required in marine insurance because the survey report usually gives sufficient details.
Under an All Risks policy the insurer does not generally require to know the cause of loss although he may ask the assured to produce evidence that, in fact, an accident has occurred which results in the loss.
Protection and Indemnity Clubs
A mutual club formed by shipowners to cover Protection and Indemnity risks not insurable in the ordinary marine market. Each shipowner "enters" his tonnage in the club and receives a Certificate of Entry for each vessel entered. He pays a nominal amount for entry and is requested to pay "calls" periodically by the club. The club is operated by a manager and controlled by a Committee appointed from members of the club. It is usual for the club also to advise members on charter disputes and defence of claims made by cargo owners. The premium provisions of the Marine Insurance Act, 1906 do not apply to mutual clubs. Further, the provisions of the Act may be modified by agreement between both parties in mutual insurance.
Protection & Indemnity Risks
Hull risks not insurable under the ordinary marine policy. these are basically liabilities of the shipowner to others or expenses unintentionally incurred by the shipowner in running his ship. Of the former the one-fourth collision liability (see Collision Clause) is the most obvious, followed by liabilities to objects, own cargo, own engagements, loss of life and personal injury and other liabilities. The sort of expenses recoverable as Protection and Indemnity risks in a club are quarantine expenses, fines, shipwreck indemnity and the like. The only standard policies to cover Protection and Indemnity risks are Builders Policies, Port Risk Policies and Yacht Policies. The marine policy may, in some cases, be extended to cover Protection and Indemnity risks, but this is unusual.
Protest
A written declaration by the master and witnessed before a Notary Public.
Proximate Cause
The most direct cause of loss or damage to the insured property. It is not necessarily the nearest cause in time but is the nearest cause in effect. The furthest cause is called "Causa Remota". The legal term for proximate cause is "Causa Proxima Non Remota Spectatur" which means that the nearest cause and not the distant cause must be taken into account when considering the cause of loss.
Pure Indemnity
An expression used to denote indemnity as laid down by the Marine Insurance Act 1906 for unvalued policies. Pure indemnity represents the actual loss suffered by the assured as though the adventure had never taken place. In the case of total loss of hull it is the actual market value of the vessel. In the case of total loss of cargo it is the actual cost of the goods to be assured plus charges of freight and insurance, not including profit. In practice, valued policies are always used in hull and cargo insurances, thus over-riding the principles of pure indemnity. This is permissible by the Marine Insurance Act 1906.
P. & L.
Profit and Loss
P.I.
Personal injury. Professional indemnity. Premium income
P.I.A.
Peril insured against
P.M.L.
Probable maximum loss. Possible maximum loss
P.O.D.
Pay on delivery
P.O.R.
Port of refuge
p.p.
Per procurationem (On behalf of)
P.R.
Port risks
p.r.
pro rata (in proportion)