Some familiar terms used in Marine Insurance are as under :
i) Actual Total Loss : It is a loss where the goods are completely lost and become irrecoverable;
ii) Average: refers to partial loss;
iii) Barratry: It is the wrongful act committed willfully by the master and/or crew members against the ship owner.
iv) Bill of Exchange: it is a bill drawn by the exporter against the importer;
v) Bill of lading : it is the receipt given by the ship owner to the shipper as an evidence that goods are loaded on board the ship;
vi) C & F Contract: It signifies cost and freight. As per this contract the buyer is responsible for loss or damage to the goods and freight as well and for that the buyer arranges insurance.
vii) C.I.F. contract : CIF means cost, insurance and freight. In this type of contract it is the seller's responsibility to arrange insurance before he adds insurance premium in the invoice.
viii) Constructive Total Loss : In constructive total loss the goods are not physically destroyed but so damaged that the cost involved in bringing back to its original position would be more than the value of goods after repair. Such loss is also called constructive loss.
ix) F.O.B. : F.O.B. means free on board. In this type of contract the seller is responsible till the goods are loaded / boarded on the ship and thereafter the buyer is responsible;
x) F.O.R.: Free on rail is also the responsibility of the seller till the goods are loaded / boarded on the rail.
xi) General Average : When the entire venture is endangered, in order to save the ship and cargo, certain sacrifices are made and/or certain expenses are incurred. When such a loss arises, it is apportioned among the interest saved.
xii) Jettison: Jettison means throwing of cargo from above board the ship to save the vessel and/or other cargo
xiii) Particular Average : Particular losses other than general average are called particular average.