Boat Insurance Glossary – I

Within the confines of the vessel.
Indemnification is the key direct advantage of any basic boat insurance policy. It is the process of reducing risk so that in the event of an unexpected loss those suffering the loss are restored, or at least moved significantly closer, to their pre-loss economic position.
Indemnity is financial recompense to a third party for something for which the insured is at fault.
Latin for from the beginning.
Insurable Interest
An insurable interest is a property that if lost or damaged could result in a financial loss or a liability that could lead to a loss.
Insurance is the protection against loss or damage to assets or injury to people. The risk of such an event occuring is passed to the boat insurance company in return for a premium.
Insurance Fraud
Insurance fraud is the act of knowingly supplying false information with the intention of misrepresenting facts in order to take out an incorrect insurance policy and/ or falsely making a boat insurance claim with the purposes of obtaining a financial gain or settlement that would not have been made should all the facts have been accurately represented.
The person covered by the boat insurance policy/ the organisation covered by the marine insurance policy.
Mercia Marine, who else?! An insurer is an organisation that provides a financial guarantee against damage, loss, ill-health etc.
Insurance premium tax. This is the tax charged by the UK government to all those who purchase any type of insurance premium (regardless be it boat insurance, car insurance, house insurance etc). At time of writing in 2011 this is 6%.