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The Clubs Work As Mutual Benefit Agreements, And Each Ship Owner Puts
The clubs work as mutual benefit agreements, and each ship owner puts up money to cover particular risks, or the percentage of the claim that an insurer will not meet. Average Adjusters: Average, in marine insurance terms, means damage. General average means damage which is shared generally. For example, if cargo had to be jettisoned to save the ship and remaining cargo, the loss is not borne alone by the owner of the cargo but is shared by everyone benefiting from the survival of the ship.
When a general average loss occurs, the average adjuster must calculate the settlement of loss in accordance with the proportion of cargo and financial interest of each interested party. Aviation Insurance: The transaction of aviation insurance has evolved along similar lines to marine insurance. There are various kinds of aviation insurance cover.
Comprehensive cover includes: ? Accidental damage to the aircraft. ? Legal liability for damage to people or property on the ground. ? Legal liability to passengers for personal injury and damage to possessions. In addition, there will be personal accident insurance to cover passengers and aircrew for the duration of travel.
Other types of cover include cargo insurance, insurance against loss of use of the aircraft hull, and airport liability and product liability which protects the manufacturers of the aircraft. Property Insurance Most property is insured under the standard fire policy. The following perils are covered by the insurance: ? Fire, earthquake, riot, civil commotion, war, invasion, rebellion etc ? Lightning.
? Explosion Policies are normally valid for a period of a year. Premiums are established with the aid of statistical tables, which show past losses in that type of business and geographical area. Insurance rates are calculated on taking various factors into account. Rates vary, depending on the structure and materials of the building - obviously a wooden building will cost more to insure than a stone one.
In addition, certain geographical areas have proved more hazardous than others, and these will be charged at a higher premium. The insurer will consider the type of business, placing it in a category which has a certain amount of risk, charged at a fixed rate. A factory producing fireworks would obviously be more expensive to insure than a clothing manufacturer. Finally, the insurer will consider the 'moral hazard', which means the reliability and prudence of the property - owner. Consequential Loss: If a company suffers major damage as a result of a fire, the business will be interrupted because of the damage to the premises.