Glossary Index

Glossary on General Insurance Terms starting with M


MACHINERY BREAKDOWN INSURANCE (MACHINERY INSURANCE) : Insurance cover for plant and machinery providing protection against all types of accidental mechanical and electrical breakdowns because of internal or external factors; cover is available when machine is operational, at rest, being dismantled and overhauled, subsequently re-erecting in the same premises; principal exclusions are perils that are covered under standard fire and special perils policy, willful negligence, gradual deterioration, and war; terms, conditions, and rates are governed through tariff

MADE GOOD AMOUNTS : Related to general average refers to property value that has been sacrificed as a portion of general average measures payable to the cargo owner from general average contribution made by all whose property or other interests are saved

MAILING LIST : Compilation of probable clients prepared as a list that can be used for solicitation through direct mail

MUMBAI : With relation to All India Motor Tariff is the area covered under the municipal corporation of Greater Mumbai and all areas up to and including panchayat/municipal limits of Thane, Panvel, Dombivli, Kalyan, Bhiwandi, Virar, Bassein, New Mumbai including CIDCO (City and Industrial Development Corporation)

MAINTENANCE WARRANTY : Warranty incorporated within the EDP Equipment Insurance Policy warranting existence of service or maintenance contract with computer makers

MAJOR PORT TRUST ACT, 1963, - LIMITATION : According to Section 120 no suit or proceeding can be initiated against a Board for one month after the notice has been given or six months post the accrual of cause of action

MALICIOUS DAMAGE : Deliberate damage or destruction of insured property or any part of it by wrongful act of an individual or individuals; cover against malicious damage is covered under the standard fire and special perils policy as component of riot, strike, malicious and terrorist damage cover; such coverage is also available under marine cargo insurance and inland transit insurance

MALPRACTICE : Improper conduct of professionals during performance of his or her duties either intentionally or carelessness or ignorance; unskillful or negligent performance where professional skills are mandatory

MALPRACTICE INSURANCE : Cover for professionals like lawyers or doctors against liability claims resulting from alleged malpractice during the delivery of professional services

MANAGED CARE : Healthcare systems integrating financing and delivering of appropriate healthcare services to covered persons through arrangement with specific providers for furnishing comprehensive set of healthcare services

MANIFEST : Statement prepared by ship's master of the cargo being carried in the ship, document is used for comparison in the event of short landing of cargo either in totality or partially or details of all cargo in the event of complete destruction of the vessel due to maritime peril; copy is retained on board for identification of cargo if the need arises

MANUFACTURERS STOCKS : Comprises raw materials, finished goods, and stock in process

MANUSCRIPT INSURANCE : Cover suitable for specific requirements of an insured when standard policy is unable to meet these needs

MARGINAL WELL : Related to energy risks, ship that nears depletion of the natural resource to such an extent that profit from continued production is doubtful

MARINE 50/50 CLAUSE : Special clause related to project insurance plans where marine portion is not insured with the same company; clause provides the insured must undertake inspection of all packages comprising project materials when these arrive on site for any possible damages sustained to these while in transit as these may have been excluded from project insurer's liability; further provides that in case of such inspection/s not being possible immediately at the time of arrival and damages are discovered later when the cargo is taken for erection liability for these damages is to be shared 50:50 between the marine cargo insurance provider and insurance company providing erection all risks policy

MARINE ADVENTURE : Voyage or time period when the cargo is exposed to the various maritime risks

MARINE CARGO INSURANCE POLICY : Insurance related to merchandise and/or goods in transit from one location to another by sea, rail, air, road, or registered post under the relevant carriage contract

MARINE CLAUSE : Clause appearing as one of the general conditions within the standard fire and special perils policy; by this clause insurance company is not liable for damages or loss to insured property in case the property at the time of the accident resulting in loss is covered under marine policy that includes peril that caused the damage/loss except for excess over the recoverable loss under the marine insurance policy

MARINE HULL INSURANCE : Insurance offered to ocean going steamers and other ships; hull insurance offers cover to the hull and machinery of the vessel and the materials and outfit and stores and provisions for officers and crew; policy also provides coverage for liabilities; plans issued for covering freight losses to owners and disbursements (amounts spent by vessel owner for fitting out the ship including stores and provisions); further policies are issued for covering vessels under construction

MARINE INSURANCE : Related to insurance of goods in transit from one destination to another by sea, inland waterways, air, road, or rail; ships covering damages or losses to hull or machinery and owner's various liabilities and interests; and freight at the risk of the carriers

MARINE INSURANCE ACT, 1906 : Act came into being in the United Kingdom on 1st January 1907 and codified the laws related to marine insurance and now forms the basis of marine insurance principles; Indian counterpart of this Act is the Marine Insurance Act, 1963

MARINE INSURANCE CERTIFICATE : When open cover is issued for providing automatic and continuous insurance protection to regular importer or exporter engaged in international trading is expected to declare details of every shipment coming within the jurisdiction of open cover as and when the shipment would occur and particulars are available; as open cover is an agreement between insured and insurance company and not stamped document, insurer will issue particular stamped certificate against every declaration after gathering relevant premium on the individual declarations; at times insurance companies provide stamped policy for individual declaration instead of the certificate and this document is legally valid for any legal purpose

MARITIME CONVENTIONS ACT, 1911 : Act providing that in case of collision between two ships the amount of blame for the respective vessels involved in collision must be fixed in order that the liability of one vessel to other can be accurately assessed; does not regulate personal injury liability or loss of life

MARITIME FRAUD : Occurs when one or more of several parties in any transaction connected with maritime adventures, acting in collusion, unjustly or illegally in procuring money or goods from another related to in the carriage, financial obligations, and trade mainly in the form of cargo thefts, scuttling of ships, frauds in chartering, or documents frauds

MARKET PENETRATION IN GENERAL INSURANCE : Marketing technique used by insurance company for increasing sales of certain product offerings within an existing market through vigorous strategies; extent to which specific product or certain products are acquired in particular markets

MARKET RETENTION : Extent of capacity that is available within the local market for accepting the risk

MARKET SHARE : Percent share of a firm in the total sales within the entire industry related to all the marketed products in the different operational areas or specific product, specific location of operation, etc.

MARKET VALUE : Value determined for similar property that could be sold or purchased in the local markets; for insurance industry market value is determined post deduction of the appropriate value for the depreciation based on its age, use, maintenance, and wear and tear from the current value

MARKETING : Procedure for optimizing use of various resources of an enterprise by trying to identity and satisfy the requirements of the clients, potential as well as actual; in the most beneficial way for the organization

MARKETING AND DISTRIBUTION RISKS : Failure of the firm to sell products at not below the planned rate due to competitive undercutting strategy or introduction of improved products; modifications in the trends, and consumer tastes, political moves, or economic conditions etc.

MASS COMMUNICATION : Usage of widely circulating media like television, newspapers, radio, and magazines for providing information to general public

MASTER POLICY : Policy issued to employer or trustee or society or association for the establishment of group insurance policy for the designated members within an eligible group

MATERIAL DAMAGE : Physical damage to tangible property, such as stocks, building, automobiles, furniture, machinery, household items etc. that result in decreasing the intrinsic value of the said property

MATERIAL DAMAGE PROVISO : Every fire policy (CL) should include proviso stating that there shall be in force insurance cover for the insured's in the property at the premises against such damages; and payment will be made or liability admitted under such coverage; however, such proviso is not applicable to property where the insured has no direct insurable interest

MATERIAL FACT : Fact/s that will influence the judgment of any prudent insurance company in determining whether to accept the risk and if so then the rate of premium, terms and conditions, and other related decisions

MATERIAL MIS-REPRESENTATION : Misrepresentation of certain facts that will influence the judgment of the insurance company with regards to assumption of the risk, premium rates, and other terms and conditions

MATERIAL REPRESENTATION : Representation to the insurance company that would affect the acceptance of risk or premium rates

MATE'S RECEIPT : When export goods are directly handed over to the ship's captain or assistant (Mate) a receipt is issued known as Mate's Receipt; the receipt is subsequently exchanged for Bill of Lading issued on the shipping company's behalf

MAXICAB : Motor vehicle adapted or constructed for carrying more than 6 passengers but under 12 excluding the driver, for reward or hire

MISREPRESENTATION  : Incorrect statement made about material fact/s if made deliberately with an intent to deceive can cause insurance contract to become void

MAIL ORDER INSURER : Kind of insurance company selling policies via mail or other mass media eliminating the requirements for agents

MAJOR MEDICAL EXPENSE INSURANCE : Form of health insurance policy providing benefits for most kinds of medical expenses up to a maximum limit; such plans may comprise internal limits and are subject to coinsurance

MALINGERING : Practice of feigning sickness or inability to work for collecting benefits under insurance policy

MANUAL RATE : Premium rate developed for group insurance cover from the standpoint of the company's standard table generally referred to as rate manual or underwriting manual

MANUSCRIPT POLICY : Plan developed for meeting the specific requirements and needs of the company

MARITAL DEDUCTION : Reduction in estate for taxation purposes that is available if descendent is survived by spouse; can be as large as elected by the administrator or executor as long as the value does not exceed that of the qualifying property passing to the surviving spouse

MARKET PRICE (OR MARKET VALUE) : Rate at which security can be sold or brought at any particular period in time

MASS MERCHANDISING : Plan for insuring individual members within a group like company employees, labor union members, under single insurance cover at lower premiums, property and liability insurance is sold to individual members using group insurance marketing techniques

MASTER POLICY (OR MASTER CONTRACT) : Policy issued to group holders settling the provisions of the group insurance cover; insured individuals are provided insurance certificates

MAXIMUM FAMILY BENEFIT : Largest sum under social security that can be paid to a family

MCCARRAN-FERGUSON ACT : Federal law passed in 1945 stating continued regulation of insurance industry by the various states is in public interest and federal antitrust laws are applicable to insurance only to the extent of the industry and not regulated by laws of the state

MEDICAID : State programs for public assistance for individuals whose resources and income are insufficient for paying for healthcare; title XIX of federal social security act offers matching federal funds for funding the state Medicaid programs effective from 1st January 1966

MEDICAL EXAMINATION : Examination given by qualified physicians for determining insurability of applicants; medical exam is also used for determining whether insured claiming disability is actually disabled

MEDICAL EXPENSE INSURANCE : Form of health insurance plan providing benefits for expenditures incurred for medical care; this kind of insurance offers benefits for physician expenditure, nursing, hospital, and other related services and supplies; these benefits are related to actual costs, specific amounts, or rendered services; this kind of policy may sometimes include benefits for preventing and diagnosing and the treatment

MEDICAL MALPRACTICE : Inaccurate treatment or care by medical professional, hospital, or other healthcare service providers

MEDICAL PAYMENTS INSURANCE : Cover available in different liability insurance plans where the insurance provider agrees to reimbursing insured and others without regard to the insured's liability for funeral or medical expenses incurred due to bodily injury or accidental death under specific conditions

MEDICARE : Program of hospital insurance (part A) and supplementary medical insurance (part B) protection offered under the social security act

MEDIGAP : Term at times applicable for private insurance products that are supplementary to Medicare insurance benefits

MINIMUM BENEFITS : Provision providing minimum amount of annuity to be paid if regular benefits formula calculates a lower amount; minimum is usually paid only when certain service requirements are adhered to at the time of retirement

MINIMUM GROUP : Least number of employees permitted under the state laws for effecting group for insurance purposes; the objective is for maintenance of some kind of appropriate division between individual policy insurance and group plans

MINIMUM PREMIUM PLAN (MPP) : Arrangement under the insurance service provider for a fee offers to handle administration of the claims and insure against large claims for self-insured groups

MISCELLANEOUS EXPENSES : Expenditures related to hospital insurance, charges (excluding room charges), and board like X-ray, medications, lab fees, and other ancillary charges

MISCELLANEOUS HOSPITAL EXPENSE BENEFIT : Provision in hospital expense plan offering payment of benefit for expenditures for required hospital services and supplies during the period of confinement; commonly covered expenses include x-rays, lab tests, medicines, anesthetics, surgical dressings, and using the operation theater

MODE OF PREMIUM PAYMENT : Frequency of payment of premiums, can be monthly, quarterly, half yearly, or annual

MONEY PURCHASE PLAN : Pension plans designed in such a way where the sponsor is obligated in clearly defined terms of the contribution made on behalf of the employee/s

MORAL HAZARD : Hazard resulting from any non-physical personal feature of a risk that increases the probability of loss or increase severity of loss; for example bad habits, poor financial standing, or low integrity

MORBIDITY : Incidence and severity of illness and accidents in well-defined class or classes of individuals

MORBIDITY TABLES : Actual statistics depicting frequency and duration of the disability

MORTALITY TABLE : Table showing number of members in a group commencing at certain age will be alive at every succeeding age; used for calculation of probability of dying or surviving through any time period and for valuing the annuity; to be appropriate for specific group must be based on experience of individuals with common characteristics like occupation or gender

MULTI-EMPLOYER PLAN : Plan according to collective bargaining agreement where contributions are made by more than one employer, under ERISA at the commencement of the plan no single employer can contribute up to 50% of the total and thereafter can go as high as 75%; employee may change the employers within the group without losing the retirement benefits unless there is break in service canceling credits earned prior to the break

MULTI-PERIL POLICY : Package plan that offers protection against number of different perils; multi-peril policies are not necessarily multiple lines of products since combined risks may be within one line of insurance

MULTIPLE EMPLOYER TRUST (MET) : Legal trust established by plan sponsor bringing together several small unrelated employers with the objective of offering group medical cover on insured or self-funded basis

MUTUAL INSURANCE COMPANY : Insurance service provider where the control and ownership is vested with the policyholders and some portion of the surplus earnings may be returned to them as dividends; no existence of capital stocks

MALICIOUS DAMAGE CLAUSE : Clause published by Institute of London Underwriters for using in cargo insurance subject to Institute Cargo Clauses B or C; adds risks of malicious acts, sabotage, or vandalism to the cargo policy

MANUAL RATES : Published rate for some form of insurance

MAR POLICY : Market terminology for marine insurance policy used by Lloyds and London company market; basic form of contract where conditions agreed by the insurance providers subscribing to the marine insurance contract are attached

MARKET VALUE CLAUSE : Provision used for property damage insurance covering some risks that obligates insurance providers in case of loss to pay the established cash selling price of damaged or destroyed stock instead of the actual value providing by the standard fire policy

MINIMUM PREMIUM : Smallest premium amount that insurance providers will accept for writing specific policy or bond for the pre designated time period

MITIGATE : To reduce the severity or adopt steps for eliminating further damage after the occurrence of the loss

MORTGAGE INSURANCE : Life insurance plan paying balance of the mortgage amount in case of death of the insured (mortgagor)

MORTGAGEE : Person loaning money to another and taking property as the underlying security in exchange for the loaned amount

MOTOR TRUCK CARGO - OWNER'S FORM : Form of insurance insuring truck owner/s against loss to his personal property or damages due to legal liability arising from being a carrier while transporting property belonging to another; no liability for loss that is not legally his

MOTOR TRUCK CARGO - TRUCKER'S FORM : This kind indemnifies the policyholder/s (trucker) for damage or loss resulting from legal liability as a carrier while transporting property of another; no liability for losses that are not legal

MYSTERIOUS DISAPPEARANCE : Disappearance of insured property in an unexplained and mysterious manner