山东财经大学 1 Unit 7 Insurance 国际商务教研室 李金萍

山东财经大学 2 1. The purpose of insurance is to provide compensation for those who suffer from loss or damage. 2. The insurance contract is a contract of indemnity between the insured and the insurer in form of Insurance Policy or Insurance Certificate.  Basic knowledge: 补偿

山东财经大学 3 3. Commonly used words in a insurance contract The insured 被保险人 The insurer 保险人 Insurance Policy 保险单 Insurance Certificate 保险凭证 Premium 保险费 The sum insured 保险金额 The amount insured 保险金额 The insurance amount 保险金额

山东财经大学 4  According to the Ocean Marine Cargo Clauses of PICC dated 1 Jan. 1981…  three basic coverages:  Free from Particular Average （ FPA ）  With Particular Average （ WPA ）  All Risks

山东财经大学 5  General additional risks ： Theft, Pilferage and Non-delivery (TPND) 偷窃提货不着险 Fresh Water or Rain Damage 淡水雨淋险 Shortage Risks 短量险 Intermixture & Contamination Risks 混杂玷污险 Risk of Leakage 渗漏险

山东财经大学 6 ● Clash & Breakage Risk 碰损破碎险 ● Risk of Taint or Odour 串味险 ● Damage caused by Sweating & Heating 受潮受热险 ● Hook Damage 钩损险 ● Risk of Rust 锈损险 ● Breakage of Packing Risk 包装破裂险

山东财经大学 7  Special additional risks ： Failure to Deliver Risk 交货不到险 On Deck Risk 甲板险 Import Duty Risk 进口关税险 Rejection Risk 拒收险 Strikes, Riots, Civil Commotions (SRCC), 罢工暴乱民变险 War Risks 战争险

山东财经大学 8  According to ICC of Jan. 1, 2009…. Institute Cargo Clauses (A) ICC (A) Institute Cargo Clauses (B) ICC (B) Institute Cargo Clauses (C) ICC (C) Institute War Clauses – Cargo Institute Strikes Clauses – Cargo Malicious Damage Clauses

山东财经大学 9 1. Insurance is to be made/effected by the seller/buyer for/at 110% of the invoice value ( full invoice value plus 10%) against/covering WPA and War Risks based on warehouse to warehouse clause as per China Insurance Clause of PICC dated …  The insurance clause in a sales contract

山东财经大学 Insurance: by the seller for … 3. Please cover/insure for us the following goods for 110% of the invoice value against All Risks … 4. The cargo is to be insured/covered for 110% of …

山东财经大学 11  Structure of Letters concerning insurance : 1. Acknowledge receipt of the letter on insurance matters. e.g.  Thank you for your letter of 10 June. With regard to your inquiry on insurance, we have pleasure in providing you with the following details:

山东财经大学 12  Thank you for your letter of 15 August asking us to cover the consignment of 30 cases of electric toys from Shanghai to London

山东财经大学 Express your willingness to insure the goods, stating clearly the usual terms of insurance, including: the value insured, types of risks covered, the insurance clause, etc. This part may consist of more than one paragraph (if needed), and states the details of insurance concisely but fully.

山东财经大学 14 e.g.  We expect you to have insurance on 30 cases of electric toys under our S/C No.4560 against All Risks and War Risk for the sum of USD at your own account.

山东财经大学 Hope for an early reply, and give assurance of your close cooperation. e.g.  If our rate is acceptable, please let us know immediately so that our insurance policy can reach you in time.

山东财经大学 16 Dear Sirs We wish to refer you to Our Order No for 500 cases of toys, from which you will see that this order is placed on a CFR basis. 请参考我们关于 500 箱玩具的第 1004 号订单， 你可以知道该货物是按照 CFR 条件订购的。  Specimen Letter 1 Asking the seller to effect insurance

山东财经大学 17 As we now desire to have the shipment insured at your end. Would you please arrange to have the goods insured on our behalf against All Risks for 110% of the invoice value, i.e. USD  the shipment 货物（尤其指船运的货物）  at your end: 在你处，在你方  on one ’ s behalf 代表某人，为 … 的利益

山东财经大学 18 We shall of course refund to you the premium upon receipt of your debit note or, if you like, you may draw a sight draft on us. We sincerely hope our request will meet with your approval. Truly yours (signature) Refund: 偿还， The premium 保险费 debit note: 索款通知；账单 Draw a draft on sb. 向某人开立汇票 Sight draft 即期汇票 Time draft/usance draft 远期汇票

山东财经大学 19 Dear Mr Smith Re:500 cases toys under Order No.1004 We have received your letter of 20 July requesting us to effect insurance on your behalf on the above shipment.  Specimen Letter 2 A possible reply to letter 1

山东财经大学 20 we are pleased to inform you that we have covered the above shipment against All Risks for USD with the People’s Insurance Company of China. The Policy is being prepared accordingly and will be mailed to you today, together with our debit note for the premium. 兹告知，兹告

山东财经大学 21 For your Information, we are making arrangements to ship the order by S.S. “Red Star”, sailing on or about 20 October. Yours sincerely 顺告，顺便说一句

山东财经大学 22 Dear Sirs Our Order No. C541 When the s.s ‘ Princess ” arrived atTripoll on 10 November, it was noticed that one side of case No.7 containing electric toys was split. We therefore had the case opened and the contents examined by a local insurance surveyor  Specimen Letters 3

山东财经大学 23 in the presence of the shipping company ’ s agents. The case was invoiced as containing 24 electric toys, five of which were badly damaged. We enclose the surveyor ’ s report and shipping agent ’ s statement.As As our order was placed on a CIF basis and you covered the insurance, We should be

山东财经大学 24 grateful if you would file the claim for us with the insurer. We sincerely hope that no difficulty will arise concerning the insurance claim. Yours faithfully (signature)

山东财经大学 25 Exercises  Useful Expressions