Chapter 10 Insurance

1. Chapter 10Insurance

2. Insurer/assurer • is the party who insures others against loss or damage and undertakes to make payment in case of loss.

3. Insured/assured • is the party who is insured against loss and to whom payment covering the loss will be made.

4. For insurer, the following should be referred to: • Underwriter, insurance company, broker • Underwriter is a person who makes insurance contracts for the goods transported by sea.

5. Insurance company • is an insurer or organization that collects premiums and underwrites policies.

6. Broker • in the western countries, the exporter, who wishes to have his goods insured, does not approach the insurer directly but instructs an insurance broker to insure on his behalf. The exporter forwards his instructions on a form supplied by the broker and gives the required details on the form.

7. The broker • who is authorized to place insurance with certain limits, write the particulars of the proposed insurance on a document called “slip”(pink slip. An employee's termination notice.) and sends the assured a memorandum of the insurance on a duplicate form of instructions.

8. Documents of Insurance • 1)Insurance Policy2)Insurance Certificate3)Combined Certificate4)Open Cover/Policy/Floating Policy5)Insurance Declaration6)Endorsement

9. Perils风险 and losses损失 • Goods during transportation on sea and in the course of loading and unloading might meet various kinds of perils and the goods might suffer loss of one kind or another:

10. Kinds of perils风险: • In marine insurance, perils are generally of two kinds:1.Perils of Sea (1)Natural Calamities: (2)Fortuitous Accidents2.Extraneous Risks

11. Kinds of losses损失: • Losses fall into two main classes: • Total Loss and Partial Loss

12. 1.Total Loss • Actual Total Loss实际全损where vessel or cargo are totally and irretrievably lost.Constructive Total Loss CTL • 推定全损in a case where the ship or the goods have been abandoned because the cost of salvage or recovery would have been out of proportion to the value.

13. 2. Partial Loss • means that the loss to the goods is only partial. • Particular Average单独海损 General Average 共同海损

14. Particular Average • If a particular cargo is damaged by any cause the damage is called particular average and the loss must be borne by the owner of this individual consignment.

15. General Average • Which is of an entirely different character. If applies to a loss intentionally insured in the general interest of the ship owner and the owners of the various cargoes. This loss is borne by all concerned in proportion.

16. *** Average损失*** • In insurance , the word “average” means expenses or loss by damage of ship or cargo in the course of sea transportation due to natural calamities and accidents and extraneous risks.

17. Insurance Cover/Coverage • PICC provides three basic types of insurance cover1.Free from Particular Average (F.P.A)平安险2.With Particular Average (W.P.A)水渍险3.All Risks 一切险

18. W.P.A • Aside from the risks covered under the F.P.A condition as above, this insurance (WPA) also covers partial losses of the insured goods caused by heavy weather, lighting, earthquake and/or flood.水渍险的责任范围除了包括上列“平安险”的各项责任外，还负责被保险货物由于恶劣气候、雷电、海啸、地震、洪水等自然灾害所造成的部分损失。

19. All Risks Aside from the risks covered under the F.P.A and W.A conditions as above, this insurance also covers all risks of loss or damage to the insured goods whether partial or total,arising from external causes in the course of transit. 一切险的责任范围除包括上列“平安险”和“水渍险”的所有责任外，还包括货物在运输过程中，因各种外来原因所造成保险货物的损失。不论全损或部分损失，除对某些运输途耗的货物，经保险公司与被保险人双约定在保险单上载明的免赔率外，保险公司都给予赔偿。

20. Insurance Covers of Additional Extra Risks • Risks that are not covered under the basic insurance covers F.P.A. and W.P.A. mentioned above may be insured against under separate declaration by the insured.The risks may be • general extra risks 一般附加险special extra risks 特殊附加险

21. General Extra Risks一般附加险 • 1)T.P.N.D. Theft, Pilferage and Non-Delivery偷窃，提货不着险 2)Fresh Water and Rain Damage Fresh and/or Rain Water Damage淡水雨淋险 3)Risk of Shortage短量险 4)Risk of Intermixture and Contamination Risks混杂、玷污险5)Risk of Leakage渗漏险 6)Risk of Clash and Breakage碰损、破碎险7)Risk of Odor串味险

22. General Extra Risks • 8)Damage Caused by Sweating and Heating受潮受热险 9)Hook Damage受潮受热险 10)Loss for Damage Caused by Breakage of Packing包装破裂险 11) Risk of Rust锈损险

23. Special Extra Risks are:特殊附加险 • 1)Failure to Delivery Risk交货不到险 2)Import Duty Risk进口关税险 3)On Desk Risk舱面险 4)Rejection Risk拒收险 5)Aflatoxin Risk黄曲霉素险 6)Ocean Marine Cargo War Risks海运战争险 7)Strikes, Riots and Civil Commotions Risks.罢工暴动及民变险

24. In marine cargo insurance, the insured may take out any one of the three basic covers, i.e. F.P.A., W.P.A., or All Risks, as the case may be. If further protection is needed, he may further insure his goods against one or several General Extra Risks and Special Extra Risks in addition to the F.P.A. or W.A. effected.

25. When goods are insured with All Risks clause, they can be further insured against one or several of the Special Extra Risks. No extra risks, general or special , can be taken out alone. Only when any of the three basic conditions is covered, can then the general or special extra risks clauses be effected, if so required.

26. premium n. An unusual or high value: Employers put a premium on honesty and hard work. 雇主们很重视诚实和勤奋的工作 adj. Of superior quality or value: premium gasoline. 质优价高的汽油 at a premium=More valuable than usual, as from scarcity: Fresh water was at a premium after the reservoir was contaminated. 在水库被污染之后，清水便因稀而贵了

27. insure the goods againstRisks for 110% of invoice valuewith the insurance company.…to effect insurance on goods against Risks for110% of invoice value with the insurer.…insure the good against Risks for invoice value plus 10%.Insurance is to be covered for 10% above invoice value.Please insure F.P.A.or W.P.A.Please insure against All RisksPlease cover insurance on FPA terms/basis.take out an insurance policy

28. coverage • 范围：观察、分析和报道某事物的范围 或程度： • expand coverage • extend coverage to… • News coverage on television 电视新闻报道

29. Franchise绝对免赔率 • In international trade, a provision in a marine cargo policy that partial losses can be adjusted if the loss exceeds a certain percentage of the total value of the shipment.take a franchise deal 做代理商

30. Deductible相对免赔率 • Common: If the loss can not exceed the franchise, no loss will be made for compensation. • Dissimilarities: Franchise: If the loss exceeds the rate, franchise means the insurance company will make compensation for all the loss without deducting the rate.Deductible: If the loss exceeds the rate, deductible means the insurance company will only make compensation for the part exceeding the rate.

31. I.O.P. • Irrespective of Percentage不计免赔率The insurance company will make compensation for the loss caused by breakage or shortage without caring I.O.P.

32. in the event: as it turned outI was worried about the hotel bill, but in the event I had enough money to pay. in the event of: if sth happensIn the event of his death, Sheila will inherit the money.

33. in that event :if that happensYou could be right, and in that event they’ll have to pay you back.at all events/in any event: in any caseIn any event, the worst that she can do is saying ‘no’.

34. damages (pl) • money paid or claimed as compensation for damage, loss or injury. • The court awarded $3000 in damages to the injured man. • damage to sth: loss of value, attractiveness, or usefulness, caused by any event, accident, etc. • The accident did a lot of damage to the car.

35. Sample Letters • 1.Transmittal of bills to insurance company • Patricia Paulson • Small Help Insurance • Smalltown, OH • Re: Homeowners Policy XXX-XXX-XXX • 28 New Street, Smalltown, OH

36. Dear Patricia • We have you know, the insurance adjuster visited the next day and completed the repairs to our house caused by the fall of the large oak tree in the front yard. As authorized us to remove the tree and make repairs to the roof of the garage where limbs fell. He instructed us to send the bills to you for submission to the insurance company.

37. 2 • Enclosed please find copies of receipts for the tree surgeon and the carpenter. They total $1,750. • Please let me know if there is anything else I need to do to receive reimbursement for this loss. • Sincerely, • John Diamond

38. 2.Inquiring about insurance coverage abroad • Dear Patricia, • Re: Most States Insurance Policy No…. • My wife and I will be taking an extended cruise to Central America in April. • We want to find out what sort of medical coverage our present health insurance policy provides while we are abroad the cruise ship and on shore. We will be visiting Mexico, Honduras, Belize, and Panama. Does our policy cover visits to the ship’s doctor? What if we need to visit an emergency room on shore?

39. 2 • We’d also like to find out about available travel insurance that would cover the cost of lost deposits if we were forced to cancel the cruise because of illness or family emergency. The cost of the cruise is $3,995. • Sincerely, • Harold Diamond

40. 3.Asking for review of all personal policies from new agency • Dear Mr. Harkit: • I am considering moving our various insurance policies to a new agency, and your company has been recommended to me.

41. 2 Enclosed are copies of our current home, car, boat, and life insurance polices. I would appreciate it if you would go over all of them and consider whether any need to be updated, or are not longer needed. In addition, of course, we would like to find our whether any lower-cost options are available.

42. 3 • Please give me a call when you have completed the review to schedule an appointment to meet with you and receive a proposal for new policies. • Sincerely, • John Diamond

43. corroborate vt. To strengthen or support with other evidence; make more certain.确认：用其他证据来增强或支持；（使信仰等）进一步巩固；确证；证实(某种说法,理论或信仰) A claimed witness of the accident corroborated the driver's statement. 一位自称的目击者证实驾驶员的说法属实。 Experiments have corroborated her predication. Yes, this is an area in which the facts have largely corroborated the theories.

44. grind to crush, pulverize, or reduce to powder by friction, especially by rubbing between two hard surfaces: 碾碎：压碎，挤碎或通过摩擦使其变成粉末，尤指在两个坚硬表面磨碎： grind wheat into flour. 把小麦磨成面粉 Snap To break suddenly with a brisk, sharp, cracking sound. 喀嚓折断：突然间折断，发出轻脆、响亮如同断裂的声音 Suddenly the branch that he was standing on snapped off. 他踩的树枝突然啪的一声折断了。

45. Shatter To cause to break or burst suddenly into pieces, as with a violent blow. 砸碎：使突然破碎或裂开成碎片，如伴以强烈的打击 The glass shattered when I dropped it. 我把玻璃摔成了碎片。 Smash To break (something) into pieces suddenly, noisily, and violently; 打碎：突然地、大声音地、猛力地把某种东西毁成碎片； "Although the bed was smashed to pieces, the man was miraculously unhurt." “虽然床摔碎了,人却奇迹般地没有受伤。”

46. Crack To break without complete separation of parts; fissure: 破裂，裂缝：没有完全分离部分的破裂；裂开： The mirror cracked. 镜子破裂了 Split To divide from end to end or along the grain by or as if by a sharp blow. 劈开、切开：从一端到另一端分开，或沿着劈线分开，或以锋利一击劈开 We split the wood into long thin pieces. 我们把木头劈成长长的薄片。 My trousers split when I sat down. 当我坐下时，裤子被撕开了。