A term used in connection with the Permanent Total Disablement condition under a personal accident insurance policy. The disablement is of permanent and irrecoverable nature and is absolutely total, in the sense that the insured person is prevented from engaging in any employment, which would gain him financial benefits,for example ,paralysis.
The clause, in relation to marine/transit insurance of commodities like tobacco, coffee beans or grain, provides that the insurer will pay the cost of garbling (sifting and cleansing to separate sound from the whole), as such an exercise prevents further damage and reduces the claim.
A loss, which arises in consequence of extraordinary sacrifices made, or expenses incurred for the preservation of the ship and cargo in time of common peril comes within General Average and must be borne proportionally by all those interested in the adventure.
The principle of General Average forms a part of the maritime law and is applicable whether or not the parties to a maritime adventure are insured.
General Average contribution
The monetary contribution required of ship owners and cargo owners in respect of general average expenditures and general average sacrifices.
The underwriter is liable for the general average contribution paid or payable by the assured when the general average act is performed to prevent loss from an insured peril.
Such liability however is limited to the proportionate amount of the contribution payable by the insured, if the contributory value of the interest is more than the insured value.
General Average Counter Guarantee
When the ship owner declares General Average, he insists on production of an unlimited guarantee to be provided by underwriters.
The underwriters issue unlimited guarantee against the assured's counter guarantee whereby he commits to reimburse the underwriters the overpayment resulting from under insurance.
When the adjustment is completed, the insurers first pay the contribution payable by the insured interest. If the contributory value of the insured interest happens to be more than the sum insured, the counter guarantee is invoked by the insurers and the insured is asked to pay back the excess amount paid on his behalf.
General average Deposit
In the absence of any acceptable form of guarantee, the receiver of the cargo will be required to pay a deposit into the general average fund before taking delivery of the cargo. The amount to be paid as a general average deposit is usually slightly higher than the estimated contribution.
A deposit receipt is issued against the money thus deposited and the deposit earns interest. When the adjustment is completed, the holder of the deposit receipt is paid the difference between the deposit plus accrued interest, and the contribution.
General Average Essentials
(1) The whole adventure must be in peril
(2) The peril must be imminent
(3) The act must be voluntary
(4) The act must be reasonable and prudent
(5) The act must be for saving all the interests involved
(6) The sacrifice or the expenditure must be extraordinary in nature
General Average Expenditure
An extraordinary expenditure incurred by the ship owner intentionally and reasonably to preserve from peril the property involved in a common maritime adventure (for example, port of refuge expenses, salvage remuneration, etc.) is known as General Average Expenditure.
Such an expenditure is recoverable from the general average fund but not directly from the underwriters. The underwriters liability for such expenditure would be only that part of the expenditure that related to the general average contribution payable by the insured interest.
General Average Fund
A Fund created by the ship owner and the average adjuster appointed on the declaration of general average, from out of the deposits collected in connection with the general average adjustment. Ship owner has the authority, without waiting for the final adjustment, to draw from the fund for general average expenditure.
General Average Guarantee
Where the cargo underwriters are prepared to commit themselves to paying the contribution assessed against the insured cargo owner, they will give a written guarantee to pay the contribution attaching to the insured interest. Such guarantee is acceptable to the ship owner only if it guarantees payment of the full contribution assessed against the insured cargo. The underwriters issue such an unlimited guarantee after obtaining from the insured a counter guarantee to reimburse the underwriters for any overpayment due to under-insurance.
General Average Loss
A general average loss is a loss caused by or directly consequential to a general average act. It includes general average expenditure as well as a general average sacrifice.
General Average Refund
This relates to the difference between the General Average Deposit collected and the actual general average contribution in respect of any interest saved by general average measures. Such refund is payable only to the party who holds the deposit receipt.
General Average Sacrifice
Sacrifice of one or more interests involved in the adventure for saving rest of the major interests
Damages awarded to an injured person for intangible loss which does not readily lend itself to quantitative measurement. Frequently called pain and suffering. General damages are distinguished from special damages which are awarded for actual economic loss, such as medical costs,legal charges, cost of repairing/replacing damaged property, loss of income, etc.
General Insurance Business
General Insurance Business means fire, marine or miscellaneous insurance business, whether carried on singly or in combination with one or more of them.
General Liability Insurance
Coverage that pertains, for the most part, to claims arising out of the insured's liability for injuries or damage caused by ownership of property, manufacturing operations, contracting operations, sale or distribution of products, and the operation of machinery, as well as professional services.
General Operating Expense
Administrative expenses incurred by an insurance company which does not include agents' commission and taxes paid by the company.
Territorial jurisdiction of the insurance coverage. Normally,the personal lines of insurances and liability insurances confine the coverage to accidents taking place within the country, unless specifically incorporated in the policy otherwise.
Insurance for motor vehicles is extended on request to include Lahore, Nepal and Bhutan without any additional premium and Bangladesh by charging a flat additional premium as given in the All India Motor Tariff.
Animals which do not exist. It is possible that insurance is taken for animals that do not exist and subsequently putting in a claim by falsifying the records and claim documents.
A process related to the cotton commodity. Cotton staples will be combed in order to remove the cotton seed. This process will be carried out in the ginning section of the factory. The process increases the fire hazard.
Gold Clause Agreement
This is an agreement entered into by insurers, ship owners and merchants associations who are members of the British Maritime Law Association in the year 1950 to increase the per package limit of liability of the carriers from Pound Sterling 100 to 200 and to extend the time limit for bringing action against the carriers from 1 year to 2 years. The agreement bound the signatories to bring action in the UK even though the Bill of Lading may provide for jurisdication elsewhere. This agreement, however, does not exist now.
Golfers Equipment Insurance
A special cover for golfers (non-professional) covering the golfing equipment against accidental loss or damage, whilst in golf course or in transit, personal effects of the insured against fire and theft while in or at any golf club and liability of the insured against any third party for bodily injury and/or property damage while playing or practicing golf by the former in any golf course.
"Goods" means goods in the nature of merchandise, and does not include personal effects or provisions and stores for use on board.
Means motor vehicle constructed or adapted for use solely for the carriage of goods, or any motor vehicle not so constructed or adapted when used for the carriage of goods.
Goods In Trust or on Commission
The person who holds the property of another either in trust or commission is deemed to posses an insurable interest in such property; he can accordingly insure them in his name.
Goods sent on approval
One of the terms of sale of goods. Here the property in the goods passes from the seller to the buyer :
a) When the buyer signifies his approval to the seller or does any act adopting the transaction.
b) If he does not signify his approval but retains the goods without giving notice of rejection within the time stipulated in the contract, or if no time has been fixed, within a reasonable time.
Seller has insurable interest in the goods until one of the above two alternatives takes place.
Reputation of a business, expressed in monetary value. Normally,goodwill is not insured by the property insurers as there is no yardstick by which it can be measured.
Any one risk retention in a pro-rata treaty are 'top' and graded. This would mean that the direct insurer has a maximum limit of retention which may reduce in respect of specific cases of risks based on qualitative analysis of the risks. Reduction in retention means corresponding reduction in surplus treaty capacity also because of line limitation.
Gramin Personal Accident Insurance (G.P.A. Policy)
A special Personal Accident Insurance policy introduced for the benefit of the people living in rural areas of the country. With a sum insured per individual as ₹ 10,000 at a premium of ₹ 5 only the policy provides cover against death, loss of limbs and/or eyes and permanent total disability arising out of any accident.
Any injury that endangers the life of the person or causes the sufferer to be in severe bodily pain or unable to follow his ordinary pursuits for a number of days. This term is specifically used in connection with "hit and run" motor accident cases where a specified compensation is payable for grievous injuries.
Gross Domestic Product
Measurement of the values of all goods and services produced in a period of a year.
Loss incurred by the direct insurer for the 100% of any one risk insured by him.
Gross National Product (GNP)
Total final value of goods and services produced in a national economy over a particular period of time, usually one year. The GNP growth rate is the primary indicator of the status of the economy.
Reckless action without any regard to consequences.
Gross Net Premium Income
When net account of a company is protected by an XL Cover, the premium for the net account is pro-rata to the line retained on risks. Such net account premium is Gross Net Premium of the company. The word gross signifies that the premium is before any deductions.
The premium paid by the policyholder.
The sum insured in respect of the Consequential Loss Policy is based on the gross profit of the business. It represents the sum total of the net profit and the insured standing charges, or if there be no Net profit, the amount of the insured standing charges less such proportion of any trading loss as the amount of the insured standing charges bears to all the standing charges of the business.
The sum of the pure premium and a loading element.
Gross Vehicle Weight
Means in respect of any vehicle, the total weight of the vehicle and load certified and registered by the registering authority as permissible for the vehicle
The term is deemed to include all periods during which the aircraft is not in flight, taxiing or moored.
Discount allowed in the premium arrived as per manual or prospectus rates depending upon the number of persons covered under a Group Personal Accident or Group Mediclaim Insurance Policy.
Group discounts are also allowed in the Industrial All Risks Policy, Householder's Comprehensive Insurance Policy, Shop Keeper's Package Policy also, where the discount depends upon the number of sections of coverage availed.
Insurance coverage for a group of individuals engaged in some common activity. For example, employees of an organisation, members of an association of professionals, farmers registered as a society for rural activities etc. Insurers issue group policies in accident insurance, medical insurance, professional indemnity insurance, etc.
Group Mediclaim Insurance
Mediclaim insurance policy issued in favour of an enterprise or an organisation or any employer, to cover their employees and dependents.These policies are also issued to associations, clubs, etc. for the benefit of their members.The essential requisite for a group policy are: some common relationship among the persons to be insured and a central point for administration of the policy scheme.
Group Personal Accident Insurance
Personal Accident Insurance policy issued in favour of an enterprise or an organisation or any employer, to cover their employees (and dependents also sometimes). These policies are also issued to associations, clubs,etc. for the benefit of their members.
The essential requisite for a group policy are: some common relationship among the persons to be insured and a central point for administration of the policy scheme.
Percentage change in the quantum of business when compared with the business in a base year. Growth rate in business of every year over the business in the previous year is assessed by the insurance companies to assess the business performance vis a vis the target fixed, analyse the reasons for shortfall if any, and to take corrective measures as are needed.
Growth rates in business of the individual field personnel is also assessed, every year, for ascertaining the individual employee's eligibility for annual increment and growth incentive as per scheme.