DAYS OF GRACE – A number of days, usually 15, may be allowed after the expiry date of the insurance during which the renewal premium may be paid and renewal effected.


DECLARATIONS (DEC SHEET) – A term used in insurance for the portion of the contract which contains information such as the name and address of the Insured, the property Insured, its location and description, the policy period, the amount of insurance coverage, applicable premiums, and supplemental representations by the Insured. · the types of coverage you have elected;
· the limit for each coverage;
· the cost for each coverage;
· the specified vehicles covered by the policy;
· the types of coverage for each vehicle covered by the policy; and
· other information applicable to the policy.


DEDUCTIBLE – The portion of a loss that you are required to pay before your insurance coverage will respond.
Also known as a SIR – Self-Insured Retention. Deductibles can be used to reduce your physical damage premiums. For example, if you owned a policy with a $200 deductible and you suffered a covered loss totaling $1,000, you would pay the first $200 and the Insurance Company would pay the remaining $800. If the loss were only $200, you would pay the entire amount and the Insurance Company would pay nothing.

DEFERRED ACCOUNT – An agreement whereby the Insured is allowed to pay premium by instalments.

DEMURRAGE – Money paid to a shipowner in compensation for delay of a vessel beyond the period allowed in a charterparty when loading or discharging. In marine insurance the term is used to denote any loss of hire period incurred by the shipowner.

DEPRECIATION – Decrease in the value of property over a period of time due to use, wear, tear, and obsolescence. For example, if you paid $500 for a television set five years ago, its current value minus depreciation might be only $125.

DEPOSIT PREMIUM – A premium paid in advance as a deposit when it is not practicable at the time of placing the risk to assess the final premium. It is usual for a provision to be made at the time of placing to allow for adjustment on expiry of the policy. In some cases the deposit is specified as a minimum premium, in which case the adjustment is made only if the final premium exceeds the deposit premium.

DEVIATION – In marine insurance deviation relates to the departure of a ship from its intended course with the intention of returning to that course and completing the planned voyage.

DIRECT LOSS (OR DAMAGE) – A loss which is a direct consequence of a particular peril. Fire damage to a refrigerator would be a direct loss. Spoiling of food in the refrigerator as a result of the fire damage would be an indirect loss.

DIRECT WRITER – An Insurance Company which sells its policies through salaried employees (licensed agents) who represent it exclusively, rather than through independent local agents, who represent several insurance companies.

DISABILITY- An injury or impairment of faculty which prevents the injured person from performing certain functions of his/her occupation.

DISBURSMENTS – Payments made “out of pocket” by the master or shipowner in connection with running the vessel.

DISCLOSURE – The insured must disclose every material fact or circumstance to the insurer before the contract is concluded, that is before the insurer accepts the risk.

DOUBLE INSURANCE – Double insurance occurs when two or more policies are effected on the same interest and adventure so that the total sum insured exceeds the value at risk. The insured may claim on either policy but he cannot claim more than the properly allowable insurable amount.

DUE DILIGENCE – The duty of a shipowner or cargo owner to take all reasonable and proper steps or measures to ensure the safety of hi own property and/or the property in his care and also to avoid damage to the property of others.

DUTY OF DISCLOSURE - A common law duty on the part of a proposer for insurance to disclose to the insurer all material facts, viz., all facts that would influence a prudent insurer in deciding whether to grant the insurance and, if so, on what terms.