unit 10 Insurance.ppt

1、Unit 10 Insurance,Teaching Objectives By learning this unit, students are supposed to be able to Grasp the definition of all the items about marine insurance Know the different kinds of insurance Write letters to deal with insurance matters,Teaching focus The kinds of insurance Some abbreviations an

2、d combinations commonly used: I.C.C. C.I.C F.P.A. W.P. W.P.A. T.P.N.D.I.C.C.C.I.C. F.P.A W.P W.P.A T.P.N.D,Definition of the terms Insurance, the insured, the insurer and premium Insurance here mainly refers to marine cargo transportation insurance business the insured is one who pays the insurance

3、company for risks of cargo. The insurer is the insurance company that agree to make payment in case of loss or damage occurred to the insured. The insured and the insurer are bound by a contract known as the insurance policy. The sum of money the insured pays to the insurer for the coverage of risks

4、 of the cargo is called premium.,The kinds of insurance Under marine cargo insurance, the perils, accidents and risks insured against are usually of two kinds. 1)Peril of the sea :Under the perils of the sea are natural calamities, such as vile weather, thunder lightning, tidal wave, earthquake, etc

5、. clssified under force majeure, and fortuitous accidents, such as ship stranded, striking upon the rocks, ship sinking, fire, explosion, etc. 2)Extraneous Risks: These risks are caused by theft, rain, shortage, dampness, war, strikes, etc.,The types of total loss and partial loss Perils of the sea

6、may cause either loss or partial loss of the insured goods during sea transport. There are two types of total loss. The actual total loss refers to the total loss or the damage of the insured goods so that they become entirely valueless. Under the constructive total loss, the actual total loss of th

7、e insured goods is unavoidable, or the cost of salvage or recovery and continual transport of the damaged goods would exceed the value of the goods in sound condition at the port of the destination. Partial loss includes general average and particular average. General average refers to a partial los

8、s intentionally but reasonably incurred during the peril in order to protect the ship and the cargos on board from loss or damage and to continue voyage safely. The loss is to be borne by all concerned in proportion. Particular average refers to a partial loss or damage to particular goods which is

9、to be borne by the owner of the cargo only.,The 3 basic insurance covers and PICC covers. Insurance clauses stipulate the rights and obligations of both the insurer and insured. In our export marine cargo transportation, there are in use Institute Cargo Clauses(I.C.C) by the Institute of London Unde

10、rwriters and China Insurance Clauses (C.I.C) by the Peoples Insurance Company of China. The ocean marine cargo clauses under the China Insurance Clauses include 3 basic insurance covers,1) Free from Particular Average (F.P.A) which mainly covers total or constructive total loss caused by natural cal

11、amities, or accidents, partial loss by accidents or by natural calamities before or after accidents, reasonable cost in salvaging the goods or averting or minimizing a loss recoverable under the Policy but not exceeding the value of the goods saved and other expenses caused by accidents and perils w

12、ithin the coverage of the insurance policy, for example, contribution to general average.,2)With Average (W.A) or With Particular Average (W.P.A) which, apart from the risks covered under the F.P.A ,covers more extensively partial loss caused by natural calamities. 3)All Risks, which cover all risks

13、 of total or partial loss arising from external causes during transit include what are covered under F.P.A and W.A,Apart from the above-mentioned basic insurance covers, there are Additional Extra Risks Clause which includes general extra risks and special extra risks. Under the general extra risks

14、,there are Theft ,Pilferage & Non-Delivery Risks (T.P.N.D), Fresh and/or Rain Water Damage, Leakage Risk, Clash and Breakage Risks, Hook Damage, Intermixture &Odor Risk, Breakage of Packing Risk and Sweating & Heating Damage. Under the special extra risks, there are Failure to Delivery Risk, Import

15、Duty Risk ,On Deck Risk, Rejection Risk, War Risk and Strikes Risk. The additional extra risks are within the scope of All Risks, it is unnecessary to cover All Risks and any one of the general additional extra risks at the same time.,The exclusions of the ocean marine cargo clauses indicate the los

16、s and charges not covered by the insurance. The Warehouse to Warehouse Clause (W/W) is adopted to determine the commencement and termination of cover with the exception of War Risk. Under this insurance, there are also stipulations about the duty of the insured and the time of validity of a claim. I

17、nstitute Cargo Clauses (ICC) includes 6 insurance covers: Institute Cargo Clauses A, Insure Cargo Clauses B, Institute Cargo Clauses C, Institute War Clauses-Cargo, Institute Strikes Clauses-Cargo, Malicious Damage Clauses. Except Malicious Damage Clauses, they all have the following contents: Risks

18、 Covered, Exclusions, Duration, Claims, Benefit of Insurance, Minimizing Losses, Avoidance of Delay, Law and Practice.,The amount insured is usually decided by the insured. In practice, the amount insured is calculated as 110% of the total CIF value of the goods insured. When there is loss or damage

19、 of the insured goods, the insured should inform the nearest branch or agency of the insurance company immediately. The claim should be made within its validity, accompanied by required documents such as the export invoice, the original bill of lading, the original policy or certificate of insurance

20、, the survey report and so on.,5)Letter analysis Letter-1 A letter Enquiring for Insurance Rate Dear Sirs, We shall shortly have a shipment of 150 cases of cotton goods, valued at US $5,000 CIF Singapore, to be shipped by S.S Twilight from Pusan. Please quote us your rate for Marine Insurance, ICC(B

21、) including War Risk. As the ship will sail from Pusan on June 4 th, we hope to have your reply as soon as possible. Yours faithfully,Letter-2 Insurance Companys Reply Dear Sirs, In response to your inquiry of 20th of this month, we wish to quote you the rate of Marine Insurance at 0.315%,ICC(B) inc

22、luding War Risk, on the shipment referred to in your letter. This is exceptionally low rate, because many of the insurance companies will hesitate to take the risk at any premium whatever, dreading the heavy average to which they are exposed on the South China Sea. We trust you will give us the oppo

23、rtunity to handle your insurance business. Yours faithfully,1)Notes: (1)valued at US$5,000CIF Singapore 价值CIF新加坡5，000美元， Valued at在此相当于which is valued at Valued一词的意思是“给定价”。 To value a necklace 给一条项链定价。 （2）ICC（B）是协会货物条款（B）保险条款的简称。ICC是Institute Cargo Clauses(协会货物条款)的缩写。如引言所述，ICC（B）是该条款中的一种险别。 （3）becau

24、se many of the insurance companies will hesitate to take the risk at any premium whatever, dreading the heavy average they are exposed on the South China Sea. 因为许多保险公司害怕在南中国海将面临重大海损，所以不愿意以任何保险费率承保。,Hesitate:有疑虑，不愿意 He hesitates to accept our offer. 他不愿意接受我们的报盘。 Whatever在此等于at all，意为“丝毫的”，“任何的”，用于否定句

25、或含有any的句子中，放在被修饰的名词后面。如： Is there any hope whatever? 有任何希望吗？ Which指代average在句中做they are exposed to的宾语，因此to 放在which前面。,2）Writing Guide (1)Make sure of the Insurance amount, Coverage, Premium Rate. (2)At the first paragraph, you should tell the details. (3)At the end of the letter, express your hope t

26、hat the ship will port there safely and further cooperation.,3)Useful sentences (1)The cargo is to be insured warehouse to warehouse against All Risks. 该货物按仓至仓条款投保一切险。 (2)We usually effect insurance against All Risks and War Risks and for the invoice value plus10% for the goods on CIF basis. 在CIF基础上

27、售出的货物，我们通常按发票金额加成10%投保一切险和战争险。 (3)We agree to your request to insure the shipment for 130% of the invoice value, but the premium for the difference between 130% and 110% should be for your account. 我同意你方的要求按照发票金额130%投保，但130%和110%之间的保费差额将由你方负担。,(4)Our insurance company is a state-operated enterprise enjoying high prestige in setting claims promptly and equitably and has agents in all main ports and regions of the world. 我们的保险公司是国有企业，享有理赔迅速，公正的声誉，并在世界上主要的港口和地区都有代理。 (5)We leave th