Definitions of Words and Phrases that are Particular to our Insurances

Certain words have specific meanings when they appear in a ‘Nautical Insurance’ policy booklet, or in our documents.

• Agreed Value: This is the price paid for the vessel or any other value we agree where we have received formal justification.
• Amount Insured: Under Section A (Hull and Machinery) it is the amount for which we have agreed to insure the vessel. It is the most we will pay in the event of damage and the amount we have agreed to pay if the vessel is a total loss, constructive total loss or compromised total loss. Under Section B (Liabilities to Others) it is the most we will pay in respect of any one accident or series of accidents arising out of one event, plus any legal costs we have agreed to pay. Under Section C (Personal Effects) it is the most we will pay in the event of loss or damage to the personal effects covered by this insurance.
• Barratry: Any wrongful act, wilfully committed without your knowledge or participation and to your prejudice by anyone on board using the vessel with your permission.
• Crew/Crew Member: A person or persons assisting in the form of crew on the vessel who is not receiving any remuneration for same.
• Documentation: A Statement of Fact / Quotation, Cover Note, Schedule or Endorsement.
• Endorsement: A written variation to the terms of this insurance. It will either be incorporated into this insurance by reference within the schedule or be the subject of a separate written notice.
• Excess: An amount to be deducted or collected in the event of any claim.
• In Commission/Laid Up: The vessel is in commission when fitted out and ready for use with her normal gear and equipment on board. She will be laid up, without our permission for use, between the dates and at the location noted within the schedule and removable equipment stored ashore.
• Insured Person: Any person on board the insured vessel other than any person employed in any capacity whatsoever by any owner of the vessel.
• Insurer: Travelers Insurance Company Limited.
• Joint Insured: Part owner who has a financial interest in the vessel and who enjoys the same benefits of this policy as the insured.
• Latent Defect: A hidden flaw or defect in the construction of the vessel which is not readily discoverable by a competent person using reasonable skill in an ordinary inspection.
• Launch and Recover: The vessel is launched for use and removed from the water after use. When ashore or unmanned the keys must be removed.
• Loss or Damage: Accidental damage caused by forcible, violent or external means.
• Marina: A secure and sheltered mooring complex, providing controlled access to berths or pontoons.
• Maximum Designed Speed: The maximum speed the vessel ought to be capable of attaining with the engines she is fitted with and without any modifications to increase that speed.
• Mortgagee: Lender who has a financial interest in the vessel.
• Piracy: Robbery or hijacking committed aboard a boat whilst at sea.
• Private Pleasure: Use of the vessel by the insured person for personal recreational activities. It does not include any other use of the vessel under the contract of hire or charter or any similar arrangement or for any commercial purpose.
• Racing: Any organised competitive events with a designated start and finish; speed tests or connected trials.
• Racing Conditions: The vessel is deemed to be under racing conditions from the time of the 10 minute starters warning signal until 10 minutes after the time logged by the race organizers when the vessel passes through the finish line.
• Recognised Mooring or Anchorage: Any mooring or anchorage noted within a Nautical Almanac or similar maritime publication.
• Seaworthy: A seaworthy vessel is one that is considered fit for purpose and includes the fitness of any equipment and competence of the crew to navigate the vessel in a safe and proper manner.
• Schedule: The pages attached to this insurance which set out details of the policy holder, the vessel, amounts insured, period of insurance, cruising limits, in commission and laid up periods and state which terms of this insurance have been amended by agreement.
• Terrorism: The use or threat of violence or force, designed to influence the government or to intimidate the public, for the purpose of advancing a political, religious or ideological cause.
• Total Loss/Constructive Total Loss/Compromised Total Loss: An actual total loss occurs when the vessel or any separately insured property is completely destroyed, is sunk or is otherwise lost or irrecoverable. There is a constructive total loss where the vessel or other separately insured property is so damaged as to be irreparable within the amount insured. A compromised total loss is an agreement between the both of us that the vessel or other separately insured property shall be treated as if it were a constructive total loss.
• Vessel: The hull, machinery, gear and equipment as would normally be sold with the vessel and which we have agreed to insure for the amount stated in the schedule. It includes, where appropriate, the vessel’s dinghies, tenders, outboard motors and any additional equipment which is separately valued in the schedule.