[00:03.50]Insurance is provided to cover almost any kind of happenings that may result in loss.
[00:08.83]Its purpose is to provide compensation for those who suffer from loss or damage.
[00:14.29]So it it also called a contract to restore to their original position a person who suffers loss.
[00:20.72]It is customary to insure goods sold for export against the perils of the journey.
[00:27.32]In international trade.
[00:29.52]the transportation of goods from the s eller to the buyer is generally over a long distance
[00:35.74]by air by land or by sea and has to go through the procedures of loading,unloading and storing.
[00:43.44]During this process it is quite possible that the goods will encounter various kinds of perils and sometimes suffer losses.
[00:53.16]In order to protect the goods against possible loss in case of such perils,
[00:58.49]the buyer or seller before the transportation of the goods usually applies to an insurance company for insurance covering the goods in transit.
[01:09.56]A proposal form should be completed and submitted to the insurance company when importers or exporters insure their goods against risks of all kinds.
[01:21.35]If the proposal is accepted the insurance company is required by law to issur a policy.
[01:27.95]which sets forth the terms and conditions of the insurance contract,namely:thr risk to be covered ,the sum insured and the premiue to be paid.
[01:39.21]A contract of insurance is one between a party who agrees to accept the risk (the insurer or the assure,know as the insurance company)
[01:50.55]and a party who seeks protection from the risk
[01:54.63]and will receive the benefit of the insurance in case of loss (the insured or the assured).
[02:00.84]In return for payment of a premium the insurer agrees to pay the insured a stated sum (or a proportion of it)
[02:09.52]if the event insured against should occur.
[02:13.67]Losses that goods might suffer during transportation on sea and in the course of loading and unloading fall into three main classes including Tota Loss,Partial Loss and Genera Average.
[02:28.53]Total Loss can be either Actual Total Loss or Constructive Total Loss.
[02:33.05]The former is the entire shipments is hit by any perils of the sea.
[02:39.03]such as beaching,grounding ,stranding,collision,sinking,natural calamities,fire,explosion,etc,and totall lost.
[02:49.85]The latter is that the shipment is not actually lost
[02:53.66]but it is so severely damaged as to make the goods no longer any use for the originally purpose.
[02:59.96]Partial Loss means the goods are party lost or damaged.
[03:03.53]General Average is defined as a loss internationallly undertaken out of the common interest and safety of the ship owner and the owners of the goods.
[03:14.40]There are three types of the basic insurance covers in marine insurance:
[03:20.87]Ftrr of Particular (F.P.A) means that the insurance company will be responsible to pay claims for losses due to ship or carrier being totally lost.
[03:32.76]With Average (W.A) is the cover under which the insurer is responsible for the partial losses of the insured goods and protects them against damage from seawater caused by natural calamities.
[03:48.51]Under the cover of All Risks the goods are insured against all risks.
[03:53.42]That is to say,the insurer is liable for all total or partial loss of or damage to the insured goods caused by natural calamities or by sea perils.
[04:06.33]General Additional Risks can be any risk that is not covered under the three basic insurance covers.
[04:12.68]They may cover the following:Theft,pilferage and non-delivery(T.P.N.D).Fresh water and/ rain water damage ,risk of shortage.
[04:25.58]Risk of intermixture and contamination,risk of leakage ,Risk of breakage ,Risk of clash,
[04:32.63]Risk of odor,risk of sweating and heating,Risk of hook danmage,Risk of rust and Risk of breakage of packing.
[04:42.38]Exporter's choice of the right coverage varies because of the nature of their particular goods and other financial reasons.
[04:51.94]If the proposal os accepted the insurer is required by law to issue an insurance policy.
[04:58.55]which lists the terms of the contract,for the applicant to fill out,
[05:03.51]which contains all the items including ownership,goods ,insured value,premium,insurance time,risks and coverages,etc.
[05:14.59]The signed insurance policy as a binding contract or a legal document that serves as evidence of the agreement between the insurer and the person who takes out insurance
[05:27.44]and forms part of the shipping document.
[05:31.07]Useful Expressions about Insurance
[05:36.58]As we will shortly ship a consignment of heavy-duty machinery with the value of $9080 from Germany to shenzhen China,we ask you to arrange insurance cover for the following:
[05:53.32]Please quote us your lowest FPA rates for delivery of fertilizer to Africa.
[05:58.92]We would like to remind you that your policy and certificate of insurance on the stock at the factory warehouse will expire on 15 July.
[06:09.96]The premium varies with the extent of insurance .should the goods be insured against additional risks,the extra premium should be borne by the buyer.
[06:21.43]If you will insure the consignment against All Risks,we can provide such coverage ,but premium is slightly higher,and additional charges will be for your account.
[06:34.60]We have arranged the insurance on all the Leather spplied against TPND,Contamination and Rain in addition to WPA at the rate of 10% for the sum of US $10,000 with the insurance company.
[06:52.49]We usually effect insurance against All Risks and War Risk for full invoice value on C.I.F.sales.
[07:00.62]We wonder whether you may offer us an All policy for the consignment.
[07:05.58]To be cover by you for 110% of total invoice value against leakage subject to relevant Ocean Cargo Clause of the People's Insurance Company of china dated 1 January,1995.
[07:22.32]Please let us know the premium at which stortage is coverable by the insurer at your end.
[07:31.41]Please kindly advise us on what terms this insurance can be arranged.
[07:37.06]Please take our the necessary cover on our purchase of cotton and send the policy as early as possible.
[07:44.29]The consingment is insured by our ipen policy No 405 ,and we look forward to receipt of your certificate of insurance.
[07:54.92]We are keen to know if you may allow us a special rate for our regular monthly shipments.
[08:01.40]A proposal form is enclosed as requested,and please fill out and then return it by the end of this month,otherwise that may make it difficult to issue the policy in time.
[08:15.95]The relevant details are to be left for you to decide,but we wish to insure the goods against All Risks.
[08:23.69]Appreciation of Selected Business Letters
[08:29.38]We acknowledge with thanks your letter of July requiring us to insure the consignment of 10 cases of cotton shirts form Manchester to Rome.
[08:39.96]We will cover insurance W.P.A &War risk according to usual practice in the absence of definite instrucations from you.
[08:50.23]The premium for this cover is at the rate of 1.5% of the declared value of $789.
[08:58.40]The policy is being prepared and it should reach you not later than 26 January.
[09:03.94]Meanwhile,we confirm that we hold the consignment covered as from today.
[09:12.53]Thank you for your letter of June 25.
[09:15.80]With regard to your inquiry about insurance ,we wish to give the folowing in reply:
[09:21.57]For your reference ,in te absence of definite instructions from our clients ,we generally cover WPA and war risk.
[09:30.87]If you desire to cover All Risks,
[09:35.26]we can provide such converage at a slightly higher premium.
[09:39.78]Breakage is a special risk,for which an extra premium will have to be charged.
[09:45.24]the present rate is about 7%.
[09:48.19]Claims are payable only for that part of the loss,that is over 5%.
[09:53.83]We note that you ask us to arrange insurance in $ 5432 for shipment of one container of televisions to Guangzhou by SS Victory from Vancouver,
[10:10.03]which is having our best attention.
[10:12.90]We wonder whether the above information will serve your purpose
[10:17.55]and we look forward to hearing further news from you.
[10:25.81]POLIVY NO .159
[10:29.39]I remitted you a check for $ 100 to extend insurance of my premises under the above policy immediately upon receipt of your renewal notice dated July 21,1999.
[10:43.68]Unfortunately,I have no record of the amount of insurance provided by the premium paid and should be obliged if your would please inform me.
[10:54.26]If the amount of the insurance be less than $80000 I should like to increase it to this amount with immediate effect.
[11:04.44]Please arrange for this if necessary and send me your account of addition premium payable.
[11:10.03]I will promptly send you a check in payment of it.