Presentation on theme: "Chapter 12 Insurance Insurance is closely related to foreign trade. In international business, the transportation of the goods from the seller to the buyer."— Presentation transcript:
Chapter 12 Insurance Insurance is closely related to foreign trade. In international business, the transportation of the goods from the seller to the buyer is usually over a long distance and has to go through the procedures of loading, unloading and storing. This process involves various risks which may result in the damage or loss of the goods, and thus the inconveniences or even financial losses to both the seller and the buyer. To protect the goods against possible losses, before shipment, the buyer or the seller usually applies to an insurance company
For insurance covering the goods To be transported In case of FOB or CFR terms, the buyer shall cover the insurance by himself, but in case of CIF terms, the seller shall cover the insurance by himself.
Useful words and expressions Insurance n. 1. As agreed, we have covered the insurance on the table cloths for 110% of the invoice value against All Risks with the People s Insurance Company of China. I d like to have the insurance of the goods covered at 110% of the invoice amount. We will effect/arrange/cover/take out on your behalf. According to our usual practice, insurance is to be effected for 110% of the invoice value.
We think it simpler to have the insurance taken care of by you. Sometimes, buyers may request insurances to cover more than 110%. She works in insurance. Take out an insurance against fire Take out an insurance on the house 2. We pay out $150 in insurance every year. With the insurance I got on my wrecked car, I bought a boat. Pay the insurance on one s property People with insurance
Insurance policy, insurance certificate Insure vt. 1. We have insured the shipment W.P.A. and against War Risk at the rate of 0.3% for the sum of US$ 250,000 with PICC. Since the establishment of the PICC, it has become the practice of our foreign trade corporations to have their imports insured with PICC. 2. Insure sb. On sth./ insure for sb. Sth Please insure us on/insure for us the following. Great Britain is a leading exporter of this service,
Earning fees for insuring other nations foreign trade. Every company insures itself against damage to its property. 3. The packing must be strong enough to insure the goods against damage in transit. Insure vi. Please insure against All Risks for /at 110% of the invoice value. We generally insure FPA on CIF basis.