Marine Insurance Terms and Abbreviations

The most commonly used cargo insurance terms have been established by the International Chamber of Commerce Incoterms© link.

TERMS: What is "Average"?

This is a term most used with marine corgo insurance policies. In order for the insured to be sure that the insured values are for an adequate amount, it is important to understand the meaning of these terms:

General Average
This type of loss is deliberate -- it is incurred by the master of the vessel, usually including jettison of some cargo, or incurring towing and/or salvage charges in order to save the ship and cargo from a threatened peril. These costs, called general average sacrifices, are proportioned among all of the parties to the marine adventure, including the various owners of the cargo and the vessel owner.

There are four frequently used average clauses:
FPA AC (American Conditions) Free of particular average (partial loss) unless caused by stranding, sinking, burning, or collision with another vessel. This limits recovery on partial losses to those directly resulting from these perils. This is the most limited average clause in general use today.

FPA EC (English Conditions) This is similar to the FPAAC Clause except that it is not necessary that the actual damage to cargo be a direct result of one of the specified perils, but only that one of the perils has occurred during the voyage and cargo is subsequently damaged by another peril of the sea such as heavy weather.

WITH AVERAGE This gives protection for partial loss from perils of the sea if the partial loss amounts to a certain percentage (usually 3%) of the insured value. A common clause reads "Subject to particular average if amounting to 3%, each case or shipping package separately insured." The percentage is called a franchise it is not a deductible percentage, but is the amount the claim must reach before the partial loss from a peril insured against is paid. The franchise is not applied if the vessel is involved in a fire, stranding, sinking, burning, or a collision, nor is it applied in general average losses.

AVERAGE, IRRESPECTIVE OF PERCENTAGE All partial losses due to perils covered in the basic Marine Perils Clause are fully recoverable regardless of percentage.


Following is a list of common abbreviations used in maritime commerce. Some are used frequently, but most have fallen out of use:


A.B.S. American Bureau of Shipping
A.C. Account, American Conditions
A.C.W.R.R.E. American Cargo War Risks Reinsurance Exchange
Ad Valorem - According to value
A.G.W.I. Atlantic Gulf and West Indies
A.H.F. American Hull Form
A.H.I.S. American Hull Insurance Syndicate
A.I.M.A. As interest may appear
A.I.T.H. American Institute Time Clauses (Hulls)
A.O.A. Any one accident
A.O.B. Any one bottom
A.O.L. Any one loss or Any one location
A.O.V. Any one vessel
A.P. Additional Premium
A.P.L. As per list (Lloyd's Shipping Index)
A.R. All Risks
A.T.C. Automatic Termination Clause (War Risks)
Aux - Fitted with auxiliary engine
AWB Airway Bill

BDI Both days inclusive
B.I. Business Interruption or Bodily Injury
B.L. or B/L Bill of Lading
B.O.V. Basis of Valuation
B.D.I. Both days inclusive
BDLS Bundles
B.N.A. British North America
B.O.C. Breach of Contract, Bulk Oil Clauses

C. & F. Cost and Freight
C.C. Civil Commotions, Cancelling Clause, Collecting Commission
Classification Clause, Continuation Clause
C.D. or C/D Country damage
C.G.M.E. China, Glass, Marble and Earthenware
CGO Cargo
CF Cost and Freight
C.I.F. Cost, Insurance and Freight
C.K.D. Completely Knocked down
CMR International carriage of goods by road
C.N. Cover Note
COGSA Carriage of Goods at Sea Act (US)
C.P. Charter Party
C.P.A. Claims Payable Abroad
C.R.O. Cancelling returns only
C.T.C. F.P.A. Corn Trade Clauses F.P.A.
C.T.L. Constructive Total Loss

D.A. Deductible Average
D.B.B. Deals, Battens and Boards
D.D. Damage done, Dry Dock
D.P.R. Daily pro rata
D.T.B.A. Date to be advised
D.V.C. Dual Valuation Clause
D.W.T. Deadweight

E. & E.A. Each and every accident
E. & E.L. Each and every loss
E. & E.O. Each and every occurrence
E.C. East Coast, English Conditions, Extended coverage
E.P.I. Earned Premium Income
E.S.D. Echo Sounding Device
E.V. Equal values, Each Vessel

F.A.A. Free of all average
F. & D. Freight and Demurrage
F.A.S. Free alongside
F.C.A.R. Free of claim for accident reported
F.C. & S. Free of capture and seizure (Excludes War)
F.C.V. Full Completed (or Contract) Value
F.D.O. For declaration purposes only
F.I.A. Full interest admitted
F.I.O. Free in and out
F.O.B. Free on board
F.O.C. Flags of Convenience, Free of Cost, Free of Claims
F.O.D. Free of Damage
F.O.M. Flag ownership, or management
F.O.R. Free on Rail
F.P.A. Free of Particular Average
F.P.I.L. Full Premium if Lost
F.R.O. Fire Risk Only
FRT Freight
F.W.D. Freshwater Damage

G.A. General Average
G.M.T. Greenwich Mean Time UTC
G.N.P.I. Gross Nett Premium Income
G.P.I. Gross Premium Income
G.O.R. Gross Original Rate
G.R.T. Gross Registered Tonnage

H.C. or H/C Held Covered
H and O Hook and Oil Damage
HSSC Heating, sweating, spontaneous combustion
HWD heavy weather damage

I. and/or O. In and/or Over, Under and/or on Deck
I.C.C. Institute Cargo Clauses
I.L.U. Institute of London Underwriters
INS VAL Insured value
I.O.P. Irrespective of Percentage
I.T.C. Institute Time Clauses
I.V. Increased Value, Inherent Vice

J. & W.O. Jettison and Washing Overboard
J.C.C. Joint Cargo Committee
J.H.C. Joint Hull Committee

LCL Less container load
L.H.W.C.A. Longshoremen's and Harbour Workers Compensation Act
LTL Less truck load
L.O.A. Length Overall
L.O.H. Loss of Hire
L.P.S.O. Lloyd's Policy Signing Office
L.R. Lloyd's Register
Ltr Lighter
Ltrg Lighterage
L.U.A. Lloyd's Underwriters Association
L.U.R. Lay-Up Return

M.D. or MALD Malicious Damage
M.I.A. Marine Insurance Act
Mindep. Minimum and Deposit Premium
M.S. Motor Ship
MV or M/V Motor Vessel

N.A. Nett Absolutely m- no deductions from gross premium
N.C.A.D. Notice of Cancellation at Anniversary Date
N.C.R. No Claim return
N.D. Non-Delivery, No Discount
N.E. Not Exceeding, North East
N.M. Non-Marine
N.N.H. Not North of Hatteras
N.P. Nett Premium, Named Perils
N.R.A.D. or N.R.A.L. No Risk after Discharge / Landing
N.R.T.O. R. No risk attached until on Rail
N.R.T.W.B. No risk attached until Waterbourne
N.R.L. Nett Retained Line
N.U.R. Not Under Repair

O.C. Open Contract, Open Cover, Off Cover, Original Condition
O.C.A. Outstanding Claims Advance
O.D. On Deck
O.G.P. Original Gross Premium
O.G.R. Original Gross Rate
O.N.P. Original Nett Premium
O.N.R. Original Nett Rate
O.R. Original Rate, Overriding Commission
O.S. Outstanding

P.A. Particular Average, Per Annum
P.C. Profit Commission
P.D. Property Damage
P.E. Personal Effects
P. & I. Protection and Indemnity Risks
P.I. Personal Injury, Premium Income
P.L. Public Liability, Partial Loss
P.P. Professionally Packed
P.P.I. Policy Proof of Interest
P.R. Pro rata
Protest A sworn statement by captain after an accident
P.T. Premium Transfer

Q.S. Quota Share

R. & C.C. Riots and Civil Commotions
R.D.C. Running Down Clause (Collision Clause)
R.I. Reinsurance
RNASX Renew as expiring
R.R.I. Respective Rights and Interests
R.O.D. Rust, Oxidization and Discolouration
RoRo Roll on Roll off - Drive on service loading vessel
R.P. Return Premium
R.T.B.A. Rate to be agreed
R.F.W. Rain and Freshwater

S.A. Subject Approval, South Africa, South America,
Salvage Association (London)
S.A.N.R. Subject to Approval (usually of leading Underwriters) No Risk
S.A.P.L. Sailed as per Lloyd's List
S.C. Salvage Charges, Spontaneous Combustion
S.D. Steel Diesel, Short Delivery
S.G. Ship and Goods
S.L. Sue and Labour charges
S.O.L. Shipowners' Liability
S.R. & C.C. Strikes, Riots and Civil Commotions
S.R.L.L. Ship Repairers' Legal Liability
S. of S. Service of Suit Clause
S.V. Sailing Vessel

TB Twisting Bending
T.C.H. Time Charter Hire
T. or C.T.L. Total or Constructive Total Loss
T.C.A. Comp Total or Constructive or Arranged or Compromised
T.L.V.O. Total Loss of Vessel Only
T.P.L. Third Party Liability
T.P. & N.D. Theft, Pilferage and Non-Delivery
T.O.R. Time on Risk
T.S. Transhipment
T.T.F.C. Timber Trade Federation Clauses

U.C.B. Unless Caused By (the vessel being stranded, sunk, burnt, on fire or in collision)
U.D. Under Deck
U.E.P. Unearned Premium
U.K.C. (B/H) United Kingdom and/or Continent of Europe Bordeau - Hamburg range.
U.N.L. Ultimate Nett Loss
U.R. Under Repair
U.S. Ad. (Pac.) United States Atlantic (Pacific)
USL&HWCA US Longshoremen's and Harborworkers Compensation Act
U.S.N.H. United States North of Hatteras
U.S.S.A. United States Salvage Association

V.C. Valuation Clause
V.M.M. Vandalism and Malicious Mischief
V.O.P. Valued as in original Policy

W.A. With Average
W.B.S. Without Benefit of Salvage
W.C. West Coast
W.C.A. Workmen's Compensation Act
W.C.S.A. West Coast of South America
W.D.F. Wireless Direction Finder
W.E.F. With Effect From
W.O. Washing Overboard
W.P. Without Prejudice
W.P.A. With Particular Average
W.R.O. War Risks Only
W.W. Worldwide

X.L. Excess Loss
XS Excess

Y.A.R. York Antwerp Rules