Complete Glossary of
Marine Terms & Abbreviations
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RACE
Radioactive containment exclusion clause - also IRACE
Ranging Clause
A clause in a hull policy exempting underwriters from liability under the policy (for damage received as well as for damage done) in the event that the insured ship collides with another ship while the vessels are approaching or ranging alongside each other at sea for the purpose of transferring cargo. Cover may be obtained by arrangement with the underwriters, in practice, provided they are notified, of the intention to transfer cargo in this manner, in advance.
The exemption does not apply to customary transhipment in port areas involving inshore harbour craft.
Received for Shipment Bill of Lading
A bill of lading issued by the carrier evidencing actual receipt of merchan¬dise for shipment. Also referred to as a Dock Receipt.
Receiver
The person appointed to "receive" and administer the rents and profits, or other moneys, accruing to an estate or business undertaking which is administered or wound-up under the supervision of the court. Official Receivers are officials permanently employed to act in that capacity in bankruptcy proceedings or the winding-up of joint-stock companies.
Receiver of Wreck
An official who is responsible for wrecks within coastal waters.
Receivership (of a company)
When a company is in receivership, the management of that company has been handed over to professional managers, who may decide to either wind up the company (see Liquidation) or to trade the company out of its financial difficulties.
Whether this falls into the ICC(A) 4.6 exclusion:
In case shall this insurance cover .... "loss damage or expense arising from insolvency or financial default of the owners managers charterers or operators of the vessel " depends on the circumstances. First, the cargo has to either lost or damaged due to either a delay, or the exercise of a lien (probably on the ship or the containers). Essentially, there has to be an interruption to the prosecution of the intended transit, specifically caused by the financial difficulties of the carrier.
If the cargo has been landed, and a fire occurs in the onshore store while awaiting another vessel, it is not likely that the proximate cause is the financial default.
Reconditioning Charges
Where practicable it is the duty of the assured to recondition cargo damaged by an insured peril, thereby minimising a claim under the policy.
Provided the charges for reconditioning are incurred short of destination and are to prevent a loss which would be recoverable from the insurer, the assured is entitled to recover these charges under the policy as Sue and Labour Charges.
Reconditioning charges at destination are not necessarily recoverable under the policy since they are merely a means of assessing the loss.
Recovery
The amount recovered from a third party responsible for a loss on which a claim has been paid.
REEFER
Refrigerated
Registered 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. 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 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.
Released Bill of Lading
Type of affreightment where no specific value has been declared for carriage. (See No Value Declared).
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 a total loss on the grounds of loss of specie. 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.
The Secondhand Replacement Clause has much the same effect on insurances of secondhand machinery, with an added proviso that the amount recoverable in repairs is limited to that proportion that the secondhand machine bears to a new machine.
Representation
A statement of fact made by the insured or their broker when negotiating insurance with the underwriter.
RFS - Received for Shipment
Rhodian Sea Law Latin Lex Rhodia.
A body of regulations governing commercial trade and navigation in the Byzantine Empire beginning in the 7th century; it influenced the maritime law of the medieval Italian cities.
The Rhodian Sea Law was based on a statute in the Digest of the Code of Justinian commissioned in the 6th century and on maritime customary law originating on Rhodes in ancient times. The regulations concentrated on the liability for the cost of lost or damaged cargo. Cargo loss was greatest during storms, when part or all of it had to be thrown overboard in order to save the ship.
see General Average.
Large amounts were also lost to piracy; from the 7th century on, there was increased danger of sea raids by Arab and Slavic pirates. Thus, the maritime law served as a form of insurance, dividing the cost of the losses between the shipowner, the owners of the cargo, and the passengers.
Rhodian Sea Law persisted in influence, if not in actual practice, through the 12th century. In the 13th and 14th centuries, Byzantine sea commerce dwindled, and eventually the law became obsolete.
RI
Registro Italiano
Rising Market
When the value of goods is rising. It is preferable for a merchant to send goods for sale at destination (i.e. on consignment) on a rising market . The insurer is not interested in whether the market rises or falls because claims are settled by comparing gross arrived sound values with gross arrived damaged values and applying the percentage of depreciation, so arrived at, to the insured value.
Risk
A risk is an occurrence which might happen but does not include an inevitability, which must happen.
RN - Release Note
Receipt signed by Customer acknowledging delivery of goods.
RO-RO - Roll On-Roll Off
A ferry type vessel onto which goods and containers can be driven, usually via a ramp.
Rowlock
a gap in the gunwale into which an oar fits for rowing; also by common usage refers to a metal crutch, swivelling in the gunwale, for the same purpose
r. & c.c.
Riot and civil commotion
r.c.c. & s.
Riot and civil commotions and strikes
R.D.C. - Running Down Clause
A term sometimes used in market practice to define the collision liability clause in a hull policy.
R.H.A.
Road Haulage Association - UK
R.I. or R/I
Reinsurance
R.R.&I.
Respective rights and interests
R.T.B.A.
Rate to be agreed
R.&K.
Ransom and kidnap (insurance)