General Insurance


Machinery Breakdown Insurance (Machinery Insurance)

Insurance for plant and machinery, providing cover against all kinds of accidental Electrical and Mechanical Breakdown due to internal and external causes. Cover is in force during the time machine is in operation or at rest or in process of dismantling and overhaul or during subsequent re-erection at the same premises. The principal exclusions are all those perils which are covered under a Standard Fire and Special Perils Policy as also wilful negligence, war, gradual deterioration etc.. The rates, terms and conditions of this cover are governed by tariff.

Made Good Amounts

The term that is associated with General Average refers to the value of the property, which has been sacrificed as a part of the general average measures that is paid to the owner of the cargo from out of the general average contribution made by all those whose property or other interests, which have been saved.

Maintenance Warranty

A warranty incorporated in the Equipment Insurance Policy, warranting the existence of a service or maintenance contract with the computer makers.

Major Port Trust Act, 1963, - Limitation

As per Section 120, no suit or other proceeding shall be commenced against a Board until the expiration of one month after notice has been given or after six months after the accrual of the cause of action.

Malicious Damage

Deliberate damage to or deliberate destruction of the insured property or any part of it by the wrongful act of any person or persons. Cover against malicious damage is provided under the Standard Fire and Special Perils Policy as a part of the Riot, Strike, and malicious and terrorist damage cover. This cover is also provided under marine cargo insurance and inland transit insurance.


Improper conduct of a professional in the performance of his duties, done either intentionally or through carelessness or ignorance. Negligent or unskilful performance of duties where professional skills are obligatory.

Malpractice Insurance

Coverage for a professional, such as a medical practitioner or lawyer, against liability claims resulting from alleged malpractice in the performance of professional services. (See also "Professional Indemnity Insurance")

Managed Care

Health care systems that integrate the financing and delivery of appropriate health care services to covered individuals by arrangements with selected providers to furnish a comprehensive set of health care services.


Statement prepared by the master of a ship, of all the cargo carried in the ship. This document is depended upon for comparison in case of short -landing of any cargo either totally or partially from the vessel or the details of all the cargo in case the vessel is totally destroyed by any of the maritime peril. A copy of the manifest is kept on board the vessel for cargo identification in case of any necessity.

Manufacturers Stocks

Consist of Raw materials, Stock-in-process and Finished goods

Marginal Well

In energy risks, vessel that is approaching depletion of its natural resource to the extent that any profit from continued production is doubtful

Marine 50/50 Clause

A special clause attached to the project insurance policies (Erection All Risks), where the marine portion of the cover is not insured with the same insurer. The clause provides that the insured should undertake to inspect all packages containing project materials as they arrive at the site for possible damages sustained by the materials during transit as they may have to be excluded from the project insurer's liability.

The clause further provides that in the event such an inspection is not possible immediately on arrival and damages are discovered only at a later date when the items are taken up for erection, the liability for such damages will be shared at 50/50 as between the insurer for marine cargo and insurer who has issued the erection all risks policy in question.

Marine Cargo Insurance Policy

Insurance in respect of goods and/or merchandise in transit from one place to another by sea, air, rail, road or registered post under the relevant contract of carriage.

Marine Clause

A clause which appears as one of the general conditions in the Standard Fire and Special Perils Policy.

By this clause the insurer is not liable for any loss or damage to the insured property if the said property is at the time of the accident resulting into the loss is also insured under a marine policy inclusive of the peril which has caused the loss, except for the excess over the loss recoverable under the marine policy.

Marine Hull Insurance

Insurance of Ocean-going steamers and other vessels. Hull insurance provides the cover to the hull and machinery of a vessel as to the materials and outfit and stores and provisions for the officers and crew. Policy also covers liabilities.

Policies are also issued to cover loss of freight to the ship-owner and disbursements i.e. amounts spent by the ship-owner in fitting out the vessel including provisions and stores.

Further policies are also issued to cover vessels in course of construction

Marine Insurance

Broadly concerned with the insurance of

- Goods in transit from one place to another by sea, air, rail, road and inland waterways

- Ships, covering loss or damage to the hull and machinery of a vessel and ship owner's various interests and liabilities and

- Freight at the risk of the carrier.

Marine Insurance Act, 1906

This Act which came into effect in UK on 1st January, 1907, codified the law relating to marine insurance and is now the basis of the marine insurance principles today. The Indian counter part of this Act is Marine Insurance Act, 1963

Marine Insurance Certificate

Whenever an Open Cover is issued to provide automatic and continuous insurance protection to a regular exporter/importer engaged in international trade, insured is expected to declare details of each and every shipment coming within the jurisdiction of the open cover as and when the shipment would take place and the particulars are available. As the open cover is only an agreement between the insurer and the insured and not a stamped document, insurer will issue a specific stamped certificate against each declaration after collection of appropriate premium on such individual declaration. Sometimes in the place of the Certificate insurers issue stamped policy for the individual declaration. This stamped certificate of insurance or the policy will be used for all legal purposes.

Maritime Conventions Act, 1911

The act which provides that in the event of collision between two vessels, the degree of blame of the respective vessels in relation to the collision should be fixed in order that the liability of one ship to the other can be correctly assessed. This act does not govern loss of life or personal injury liabilities.

Maritime Fraud

Maritime Fraud occurs when one, or more of the various parties, involved in transactions connected with maritime adventures, acting in collusion, succeed, unjustly and illegally, in obtaining money or goods from another connected in the carriage, trade and financial obligations. They are mainly in the form of

(a) Scuttling of ships

(b) Documentary frauds

(c) Cargo thefts

(d) Frauds in connection with charters.

Market Penetration in General Insurance

(i) Marketing Strategy adopted by the insurer to increase the sales of selected insurance products within an existing market through vigorous marketing techniques.

(ii) Extent to which a particular product or certain identified products are purchased in a particular market.

Market Retention

The extent of capacity available within the local market to accept a risk

Market Share

Percentage share of a company out of the total sales by the entire industry, in respect of all the products marketed, in all the areas of operation, or a specific product, a specific area of operation and so on.

Market Value

Value at which similar property could be normally purchased or sold in the local market. For insurance purposes market value is arrived at after deduction of appropriate value for depreciation of the property based on age, usage, wear and tear and maintenance, from current value

Marketing and Distribution Risks

Failure of a firm/company to sell all its produces at not less than the planned price owing to competitors undercutting the price or introducing better products, change in the fashions and the tastes of the customers, general economic conditions or political moves etc.

Master Policy

A policy that is issued to an employer or trustee or an association or a society establishing a group insurance plan for designated members of an eligible group.

Material Damage

Physical damage to any tangible property like building, machinery, stocks, furniture, household goods, automobiles etc. which results in reduction in the intrinsic value of such property.

Material Damage Proviso

Every CL (Fire) Policy must contain a proviso that

a) There shall be in force an insurance covering the insureds interest in the property at the premises against such damage; and

b) Payment shall have been made or liability admitted under such insurance

However, this proviso shall not apply to property on which the insured have no direct insurable interest.

Material Fact

A fact which would influence the judgement of a prudent insurer in deciding whether to accept the risk and if so, at what rate of premium, terms, conditions etc.

Material Mis-representation

Misrepresentation of certain facts which will influence the insurer's judgement as regards insurance of a risk and fixing of rates, terms, conditions etc.

Material Representation

A representation to the insurer which would affect him in accepting the risk or in rating the premium.

Mate's Receipt

When the goods for export are directly handed over to the captain of the ship, or his assistant called the Mate, he issues a receipt called the Mate's Receipt. This receipt is subsequently exchanged by a Bill of Lading issued on behalf of the Shipping Company.


A motor vehicle constructed or adapted to carry more than six passengers, but not more than twelve passengers, excluding the driver, for hire or reward.


A federal health care program for people aged 65 and over, and for the disabled.

Moral Hazard

Moral Hazard refers to increase in probability of loss that results from dishonesty in the character of the insured person. Thus it is the dishonest tendencies on the part of the insured person that may induce that person to attempt to defraud the insurance company

Morale Hazard

An attitude that increases the probability of loss from a peril. The attitude of, "It's insured; so why worry?" is an example of a morale hazard

Mortgage Insurance

Life insurance that pays the balance of a mortgage if the mortgagor (insured) dies.


The person who has loaned his money to another and taken the security of the property in exchange.

MPL (Maximum Probable Loss)

The largest loss thought probable under a given insurance policy. Normally applied to material damage risks where the total sum insured is not considered to be at risk from one loss event

Multi-Peril Policy

A package policy which provides protection against a number of separate perils. Multi-peril policies are not necessarily multiple line policies, since the combined perils may be all within one insurance line

Mysterious Disappearance

The disappearance of insured property in a mysterious, unexplained manner.