SALVAGE –
(1) In marine insurance: an award payable to a third party for services rendered to preserve maritime property from peril at sea.
(2) In property insurance: the residual monetary value of insured property damaged as a result of an insured peril.

SALVAGE CHARGES – Money properly payable in an award to a third party acting independently of contract to preserve the property insured in a maritime adventure from an insured peril.

SCHOONER – A two-masted sailing vessel built with sharp lines for speed.

SEAWORTHINESS – In marine insurance, every voyage policy (hull or cargo) carries an implied warranty that the vessel is seaworthy at the commencement of the voyage.

SECURITIES - In Crime (‘Money’) insurance, all negotiable or non-negotiable instruments or contracts

SELLER’S INTEREST – The insurable interest of the seller of the goods covered by a marine cargo insurance policy.

SERVICE OF SUIT – Instituting proceedings at law to pursue an action against a party to settle a dispute. In the absence of any provision to the contrary, a suit can be served under any jurisdiction.

SERVICE OF SUIT CLAUSE – A provision in an insurance policy stating the jurisdiction that the Insurer agrees to accept for service of suit representing either money or other property. It includes stamps, tokens and tickets, but does not include money.

SETTLEMENT – Usually, a policy benefit or claim payment. It connotes an agreement between both parties to the policy contract as to the amount and method of payment.

SPECIFIED PERILS – An optional coverage designed to provide basic protection for your vehicle for loss or damage resulting from incidents specifically stated in your policy. A few examples of the types of losses Insured under named perils coverage include fire, lightning, theft, explosion, earthquake, windstorm and hail. This coverage is optional and may be purchased in addition to the mandatory coverages required by law, and it is subject to a deductible.

SHORTAGE – Circumstances where marine cargo is delivered to the consignee in a lesser amount or quantity than should have been delivered.


SPECIAL PERILS – An optional coverage designed to provide protection for your property or vehicle in respect of loss or damage resulting from incidents not specifically stated in the policy. A few examples of the types of losses Insured under the ‘special perils’ extension are: flood, earthquake, malicious damage, bursting or overflowing of water tanks, apparatus and pipes, riot and civil commotion.


SPONTANEOUS COMBUSTION - Self-ignition of combustible material through chemical action (as oxidation) of its constituents. In marine shipments, it may occur when cargo such as soft coal or lignite is loaded in a wet condition.


SPREADING THE RISK – One of the basic principles of insurance where an Insurer seeks to limit his exposure on a particular location. He may do so by (1) Accepting only part of a risk offered to him thereby spreading the risk over a number of Insurers and (2) Seeking to reinsure a portion of the line he has accepted with other Insurers.


SETTLING AGENT – An agent authorised to pay claims under an insurance policy.


STRANDING –With regard to a vessel: to run, drive, or cause to drift onto a strand: run aground. The vessel must be hard and fast for an appreciable period of time; a mere touch and go or a grounding due to the rise and fall of a tide would not constitute stranding.


STRIKE – Sudden and dramatic cessation of work by common agreement to obtain remedy for grievance or better working conditions.


SUBJECT MATTER INSURED – The subject matter exposed to risk to which the Insured’s insurable interest attaches.


SUBROGATION – The right of an Insurance Company to step into the shoes of the party whom they compensate and sue any party whom the compensated party could have sued as a means of recouping the loss.


SUE AND LABOR CLAUSE - A clause in a marine insurance policy whereby the insurer accepts liability for charges incurred by the insured in seeking to preserve his property from loss or to minimise a loss that would be covered by the policy. The insured is said to sue and labour for the protection of his property.


SUM INSURED – The maximum amount of liability of the Insurer under an insurance policy. The premium rate is applied to the sum insured to determine the policy premium.


SURVEY FEE – The fee payable to a surveyor for his services in carrying out a survey and issuing a survey report.


SURVEYOR – A competent person with knowledge and skill to carry out a survey on insured property that has been damaged and to produce a survey report.


SURVEY REPORT – The report prepared by the surveyor which is submitted by the claimant with his claim and which gives details of damage to the insured property.


SYNDICATE – A group of underwriting members at Lloyd’s that offers a consolidated facility in which each member accepts his proportion of liabilities accepted on behalf of the syndicate by the active underwriter. The active underwriter may be a member of the syndicate or a salaried employee.