GLOS,SARY OF TECMICAL TERMS 



Dual valuation . This clause of the insurance contract provides 

 for one value of the vessel \rLth. respect to the total loss 

 and another, higher value, with respect to all other losses 

 covered by the policy. 



Deductible clause . Under this clause the policyholder is entitled 

 to recover the amount of the loss which is in excess of the 

 sura specified in the deductible clause. For example, if the 

 clause provides for a $500 deductible and a claim represents 

 a loss of $1,000, the insured receives only $500. 



Franchise clause . The difference between this clause and the 



deductible clause is that in franchise, the Insured recovers 

 the entire amount of loss without deductions if that amount 

 exceeds the deduction specified in the clause. 



Hull Insurance . This kind of insurance protects the vessel o'vmer 



against economic loss which may arise from damages to the hull, 

 machinery, and equipment of the insured vessel under conditions, 

 clauses, and limitations provided by the insurance contract. 



Inchmaree or negligence clause . Full coverage under this clause 



indemnifies the insured vessel o^mer for breaJk downs of motor, 

 generators, or other electrical machines and electrical 

 connections caused by negligence of the master, charterers, 

 mariners, engineers, or pilots but not caused by defects in 

 the parts of the engine . 



Insurance amount . For hull insurance the amount is a single fixed 

 amount as stated in the policy. For protection and indemnity 

 insurance the insurajnce amount is usually on per crewman basis. 



Oligopoly . A condition of a few sellers or in this context a few 

 insurance companies operating in the msirket. 



Policy year . The term refers to the period, usually twelve months, 

 during which the contract is in effect for one commercial fish- 

 ing vessel. The period may begin any day during a calendar 

 year. The concept is highly Important because it represents 

 a unit on the basis of which the loss experience of insurers 

 may be determined. The net premium collected under a po2.icy 

 year equals the earned premiiim and all the losses paid for 

 claiins which were incurred during the policy year represent 

 the loss ratio of the insurer for one insured conmercial 

 fishing vessel. 



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