General Insurance



Destruction of productive capabilities in a plant or factory by those opposed to a company management. Sabotage is a malicious act and loss sustained by the insured arising out of the destruction of the insured property by sabotage is recoverable under the malicious act extension.

Safely landed

The term relates to Marine Cargo Insurance. Goods are safely landed when they have been landed in the customary manner within a reasonable time after arrival at the destination.

Safety Audits

A system that brings together the various techniques relating to both the perception of risk and the identification of operative cause and perils. It has been defined as 'a critical examination of an industrial operation in its entirety to identify potential hazards and levels of risk'.

Said to contain

A term which finds a place in the receipts given by all the carriers in connection with the goods entrusted to them for carriage/transport from one place to another, which are contained in cases or any closed packages. It is then the responsibility of the consignor or the consignee to establish to the satisfaction of the carrier about the description and quantity of the goods in the packages, when any shortage of contents, while in the custody of the carrier is alleged by the consignee at the time of delivery.

Sailing Vessels

These are country crafts propelled by wind power. They are either wooden built or steel built. These vessels are used to carry cargo between Indian Ports and also between Indian Ports and ports in countries in close proximity to India, such as Sri Lanka, Pakistan, Persian Gulf and East Africa.

Sale Contract

Contract of Sale means contract by which the seller and the buyer agree on the terms and conditions of sale.

Sale of Vessel clause

Provision in the Institute Hull Clauses which provides that the policy is automatically cancelled in the event of change of ownership of the vessel or its management. Continuation of cover in such cases, if agreed by the insurer will be done by the insurer by suitable endorsement on the policy.

In case of cancellation, the insured will be entitled for pro rata daily net premium return.


Art of persuading people to purchase a product or to avail a service.


1. Property which is partially saved from loss or damage.

2. A compensation for salvage services paid under contract.

Salvage Association

An Association incorporated in U.K. It is governed by a Committee drawn from Lloyd's and Company underwriters. Its main activities consist of

(i) Providing expert advice and supervision of salvage operations

(ii) Undertaking damage and condition surveys of hull and cargo

(iii) Supervision of repairs, towage and voyage approvals

(iv) Site and lay-up surveys

(v) Oil industry damage surveys

(vi) Preparing the case for insurers when important litigation is in prospect

The services of the Salvage Association are available to underwrites, ship-owners and others on request from the interested parties. It has offices in many important ports and has a world-wide network of correspondents.

Salvage Charges

In relation to Marine Insurance, refers to the cost incurred by third parties, independent of any contract, towards salvage operations in saving a distressed vessel. Salvage Operations will include towage, refloating, uprighting, or raising-up a sunken vessel. Salvage Charges do not include the expenses of services in the nature of salvage rendered by the insured or his agents, which would be treated as Sue and Labour Charges or General Average, depending on the circumstances.

Salvage Loss

Occurs when the Underwriter agrees to settle a cargo claim by paying the difference between the insured value and the proceeds realized by selling the damaged goods.


(1) A list of specified amounts payable for, usually, surgical procedures, dismemberments, ancillary expenses or the like in Health Insurance policies; (2) The list of individual items covered under one policy as the various buildings or animals and other property in property insurance; (3) In Marine policies, a list attached to a slip, open cover, policy or other document, usually detailing the rates of premium for various voyages, interests and risks.

Schedule of Loss

Notice completed by the insured documenting loss or damage to contents, personal property and / or stock.

Seaworthiness Warranty

There is an implied warranty in every voyage policy that the ship must be seaworthy at the commencement of the insured voyage or, if the voyage is carried out in stages, at the commencement of each stage of the voyage. To be seaworthy, the ship must be reasonably fit in all respects to encounter the ordinary perils of the contemplated voyage, property crewed, fuelled and provisioned, and with all her equipment in proper working order. Cargo policies waive breach of the warranty, except where the Assured or their servants are privy to the unseaworthiness. Breach of the warranty is not excused in a hull voyage policy, literal compliance therewith being required. Although there is no warranty of seaworthiness in a hull time policy, claims arising from unseaworthiness may be prejudiced if the ship sails in an unseaworthy condition with the knowledge of the Assured.


The Underwriters subscribing a risk. The Insurers.


A form of risk financing through which a firm assumes all or a part of its own losses

Short Period Rates

Percentage of annual premiums charged for short period policies

Short Rate Cancellation

Cancellation with a less than proportionate return of premium: also known as Pro Rata Cancellation.


Sufficient assets and income. It is the primary responsibility of a state's insurance department is to monitor insurance companies licensed to transact business within their state and make certain that they remain solvent and have the ability to pay the claims of their policyholders.

Speculative Risk

A condition in which there is a possibility of loss or gain

Sprinkler Leakage Insurance

Insurance against loss from accidental leakage or discharge from a sprinkler system due to some cause other than hostile fire or certain other specified causes

Standing Charges

Expenses which still have to be met even if a business cannot earn its full income owing to fire or other damage. These expenses do not diminish proportionately as a result of the damage

Stop Loss

(1) Any provision in a policy designed to cut off the insurance company's loss at a given point. Aggregate benefits and maximum benefits are an example; (2) A type of reinsurance designed to transfer the loss from the ceding company to the reinsurer at a given point.


It is defined as the transfer of rights and remedies of the insured to insurers who have indemnified the insured in respect of the loss

Subrogation Waiver

A waiver by the named insured giving up any right of recovery against another party. Normally an insurance policy requires that subrogation (recovery) rights be preserved.


Occurs when the ground under a building moves downwards, often as a result of drying out too much

Sue and Labour

Expenses incurred by the Assured or their representatives with the intention of preventing or minimizing a loss for which the Underwriter would have been liable. They do not include expenses incurred in general average or salvage acts, these being recoverable under the policy only as part of the Underwriter's liability for contribution to general average or salvage, if any. Sue and labour charges are recoverable under a policy that incorporates a sue and labour clause (SG policy), or in accordance with the wording of the policy (e.g., under the "Duty of the Assured" clause attached to a MAR policy).

Surrender Value

Surrender value is the amount payable to the policy holder on his surrendering his right under a policy and terminating the contract of insurance

Surrounding Property

Property belonging to the insured or in his custody or control except for the plant causing the damage or property being lifted


The company official who inspects property proposed and makes recommendations as to rating and loss reduction