Both-To-Blame Collision Clause

Dictionary Says

Definition of 'Both-To-Blame Collision Clause'


Part of the Ocean Marine Insurance policy that states that if a ship (vessel) collides with another ship due to the negligence of both, owners and shippers of both vessels must share in the losses in accordance with the monetary values of their cargo and interests before the collision. The owners of the cargo and company responsible for shipment are both required to pay for losses.

Investopedia Says

Investopedia explains 'Both-To-Blame Collision Clause'


As globalization grows, the shipping industry also grows. In the event of a collision the company's liabilities, and thus risk, will be limited with ocean marine insurance. An Ocean Marine Insurance provides coverage against losses for ships. It provides protection in the event of damage or destruction of a ship's hull and/or the ship's freight.

Some protections also provided under this insurance include:
- Collision of the ship with another ship or object
- A ship sinking, capsizing, or being stranded
- Fire, piracy, jettisoning (throwing overboard of property to save other property)
- Barratry (fraud or an illegal act by a ship's master or crew)

Damage due to wear and tear, dampness, decay, mold and war are not included in the coverage.
comments powered by Disqus
Hot Definitions
  1. Legal Monopoly

    A company that is operating as a monopoly under a government mandate. A legal monopoly offers a specific product or service at a regulated price and can either be independently run and government regulated, or government run and regulated.
  2. Closed-End Fund

    A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange.
  3. Payday Loan

    A type of short-term borrowing where an individual borrows a small amount at a very high rate of interest. The borrower typically writes a post-dated personal check in the amount they wish to borrow plus a fee in exchange for cash.
  4. Securitization

    The process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors.
  5. Economic Forecasting

    The process of attempting to predict the future condition of the economy. This involves the use of statistical models utilizing variables sometimes called indicators.
  6. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and agricultural products.
Trading Center