Unit Ten:InsuranceUnit Ten:InsuranceUnit Ten:InsuranceUnit Ten:Insurance

I. Introduction Classifications of Insurance Concerning means of transportation, there

are four kinds of basic insurance: Marine insurance Land transportation insurance Air transportation insurance Mail/Parcel transportation insurance

II. Risks of Marine Transportation and

Marine Losses

1. Kinds of Risks

Risk of Marine transportation can be divided into two kinds:

(1) Perils of the Sea ( 海上风险，“海难” )

(2) Extraneous Risks （外来风险）

Natural Calamities

Perils of the Sea

Risks of Accidents

Marine Transportation

General Extraneous Risks

Extraneous Risks

Special Extraneous Risks

(1) Perils of the Sea

Perils of the Sea refer to “Natural Calamities” ( 自然灾害 ) and “Accidents” ( 意外事故 ).

Natural CalamitiesNatural Calamities refer to the calamities caused by the forces of Nature, such as heavy weather, lightning, tsunami, earthquake, and flood.

AccidentsAccidents refer to the events

happened unexpectedly, such as the

carrying conveyance being grounded,

stranded, sunk or in collision with

floating ice or other objects as well as

fire or explosion.

(2) Extraneous Risks

Extraneous Risks include General Extr

aneous Risks ( 一般外来风险 ) and Speci

al Extraneous Risks （特殊外来风险） .

General Extraneous Risks refer to the risks arising from the general extraneous causes such as theft, rain, shortage, stain, leakage, breakage, rusting, hook damage.

Special Extraneous RisksSpecial Extraneous Risks refer to the risks arising from the special extraneous causes such as war, strike, and government prohibition.

2. Kinds of Marine Losses

Definition:

Marine Losses ( 海上损失 )refer to the

damage and loss of the insured goods, caus

ed by Perils of the Sea in the course of trans

it.

①According to the degree of the loss, Marine Losses can be divided into two kinds:

Total Loss ( 全部损失 )

Partial Loss ( 部分损失 )

Total loss means the entire loss of the whole consignment, which is composed of actual total loss and constructive total loss. Actual Total Loss

Total Loss ( 实际全损 )

Constructive Total Loss

( 推定全损 )

Actual total loss refers to the total loss of an entire shipment when the property is completely lost or destroyed and of no commercial value.

Constructive total loss means the loss where an actual total loss appears to be unavoidable or the cost to be incurred in recovering or reconditioning the goods together with the forwarding cost to the destination named in the Policy would exceed their value on arrival.

Partial loss refers to the losses that are not

covered in actual total loss and constructive total

loss.

②According to the nature of the loss, Marine Losses can be divided into two kinds:

General Average (GA)

( 共同海损 )

Particular Average (PA)

( 单独海损 )

General Average is a contribution made, by all parties concerned in a sea adventure, toward a loss occasioned by the voluntary sacrifice of the property of some of the parties in interest for the benefit of all.

It is called general average, because it falls upon the gross amount of ship, cargo, and freight at risk and saved by the sacrifice.

General Average requires four elements:

(1) The danger is common in which vessel, cargo and crew all participate.

(2) The danger is imminent and apparently inevitable, except by voluntarily incurring the loss of a portion of the whole to save the remainder.

(3) There must be a voluntary jettison, or casting away, of some portion of the joint concern for the purpose of avoiding this imminent peril. In other words, it is a transfer of the peril from the whole to a particular portion of the whole.

(4) The attempt to avoid the imminent common peril must be successful.

Particular Average signifies the damages or partial losses happening to the ship, or cargo, or freight, in consequence of some fortuitous or unavoidable accidents; and it is borne by the individual owner of the articles damaged, or by their insurers.

III. China’s Marine Cargo Insurance Clause and Insurance Coverage

PICC: The People’s Insurance Company of China ( 中国人民保险公司 )

CIC: China Insurance Clause ( 中国保险条款 )

1. Contents of Ocean Marine Cargo Clause

2. Type of Insurance Coverage

There are mainly two types of insurance

coverage:

basic coverage ( 基本险 )

additional coverage ( 附加险 )

Basic coverage mainly includes: FPA ( 平安险 )

WA/WPA ( 水渍险 )

All Risks ( 一切险 )

Additional coverage mainly includes:

General additional coverage

Special additional coverage

General Additional Coverage refers to the loss caused by general extraneous risks, which includes T.P.N.D. ( Theft, Pilferage and Non-Delivery偷窃、提货不着险 ) ， F.W.R.D. (Fresh Water and Rain Damage 淡水雨淋险 )Shortage ( 短量险 ) ， Intermixure and Contamination ( 混杂、玷污险 ) ， Leakage （渗漏险）， Clashing and Breakage ( 碰损、破碎险 ) ， Taint of Odor ( 串味险 ) ， Sweating and Heating ( 受潮受热险 ) ， Hook Damage ( 钩损险 ) ， Loss and/or Damage Caused by Breakage of Packing ( 包装破裂险 ) ， Rusting （锈损险） .

Unit2 Memos & E-mails

• A memo (short for memorandum, often-called interoffice memorandum or internal memo) is drafted for internal purposes and meets the need for fast internal communication within the company. Memos are often used to inform someone of the state of things at a particular moment, and alternative courses of action may then be recommended.

These additional risks cannot be

covered independently and should go

with FPA or WPA and are included in

All Risks Coverage.

Special Additional Coverage refers to the loss caused by special extraneous risks, which includes War Risk ( 战争险 ) ， Strikes Risk ( 罢工险 ) ， Failure to Delivery Risk ( 交货不到险 ) ， Import Duty Risk（进口关税险）， On Deck Risk ( 舱面险 ) ， Rejection Risk ( 拒收险 ) ， etc., among which War Risk and Strikes Risk are more common.

3. Calculation of Insurance Amount

According to the practices of international insurance market, the insurance amount is generally calculated based on the formula: C.I.F. + 10% value, that is to say, cost of goods + insurance premium + amount of freight + a percentage of the total sum to represent a reasonable profit on sale of the goods and incidental costs like processing the claim, survey costs, possible inflation costs of replacements. It is done this way to cover the costs of transport in the policy. Especially important if the damage occurs at the final delivery point. Sometimes, buyers may request insurances to cover more than 110%. In such circumstances, the extra premium will be for buyer’s account.

投保，办理保险Cover insuranceArrange insuranceEffect insuranceProvide insuranceTake out insurance

说明情况时， insurance 后介词的用法：1. 表示所保的货物，后接 on ，如： insur

ance on the 100 ton of wool 。2. 表示投保的险别。后接 against 。如：

Insurance against all risks 3. 表示保额。后接 for 如 insurance for 1

10 ％ of the invoice value

4. 表示保险费或费率， 后接 at ，如： insurance at a slightly higher premium ，insurance at the rate of 5 ％

5. 表示向某保险公司投保，后接 with ， 如： insurance with PICC

We have covered insurance on the 100 metric tons of wool for 110%of the invoice value against all risks.

___Insure the goods For the buyer’s account/ at the buyer’s cost/expenseOn behalf of the buyersWith an insurance companyFor the sum of USD 100,000To / in the amount of usd100,000At the rate of 0.5%At slightly premiumWith particular averageInsure sb on sth Insure against FPA/ all risks/ TPND/RFWD/SRCC

Letter 1

1. Insurance policy 保险单 open policy2. Cover note 暂保单

Questions:1. Where does the writer come from?2. What did the writer enclose in this letter?3. Why didn't the writer send the insurance policy?4. When will the insurance policy be available? Key:1. He comes from an insurance company.The cover note.They are still preparing it.This week.

Letter 21. assessor n. 估价员，评估员2. notify v. 通知3. article n. 商品， 物品4. consignment n. 一批货物5. depot n. 车站

Letter 31. take out insurance against breakage

投保渗漏险2. invoice value 发票金额

Letter 41. whereas conj. 然而， 反之 （ = but, 用于引起相

反的意思）； 鉴于（ = because of the fact that ，公文用语，用于句首）

e.g. Tourists want to travel by boat, whereas businessmen would rather travel by plane.

Whereas the peoples of the colonies have been grieved and burdened with taxes…

2. call for ph. v. 要求，需要 e.g.The present situation of the market calls for enti

rely new measures.

3. inconsistent adj. 不一致，矛盾的 e.g.Those stipulations are inconsistent with what we

have agreed upon.. 4. refrain v. 抑制 e.g. As your price was too high, we refrained from cab

ling back. 5. deduct v. 减去，扣除6. leftover n. 剩余物 本例文指的是剩余的金额7. proceeds 收入款项（尤指货款收入） e.g. The proceeds of the consignment have already b

een remitted to you.

Exercise:Translate the following terms and expressions into Chinese:

• 1. at your end• 2. on CFR basis• 3. effect insurance• 4. be likely to• 5. be interested to know• 6. All Risks• 7. underwriter• 8. insurance coverage• 9. risk of breakage• 10. PICC

Key• 1. 在你处• 2. 在 CFR 价格基础上• 3. 办理保险，投保• 4. 有可能• 5. 想知道• 6. 一切险• 7. 保险商，保险业者• 8. 保险范围• 9. 破碎险• 10. 中国人民保险公司

• 1. in answer to• 2. in regard to insurance• 3. in the absence of• 4. in other words• 5. subject to• 6. a franchise shop• 7. ship...in bulk• 8. risk of shortage• 9. risk of leakage• 10. serve your purpose

Key• 1. 为答复• 2. 关于保险• 3. 在没有……的情况下• 4. 换句话说，也就是说• 5. 以……为条件，以……为准• 6. 专卖店• 7. 散装装运• 8. 短量险• 9. 渗漏险• 10. 使你达到目的，满足你的要求

Translate the following terms and expressions into English:

• 1. 预约保险• 2. 保险费• 3. 投保 , 办理保险• 4. 保险金额• 5. 保险单• 6. 保险公司• 7. 保险凭证• 8. 保险条款• 9. 发票金额• 10. 战争险

Key• 1. open cover• 2. insurance premium• 3. cover/ arrange/ effect/ take out insurance• 4. insurance amount• 5. insurance policy • 6. insurance company• 7. insurance certificate• 8. insurance clause• 9. invoice value• 10. War Risk

• 1. 一切险• 2. 水渍险• 3. 平安险• 4. 额外保险• 5. 保险费率• 6. 罢工暴动民变险• 7. 明确指示• 8. 惯例• 9. 特殊附加险• 10. 淡水雨淋险

Key• 1. All Risk• 2. W.P.A.• 3. F.P.A.• 4. extra premium rate• 5. insurance premium rate• 6. SRCC• 7. definite instructions• 8. usual practice• 9. special additioned risks• 10. FWRD

Choose the best answer to complete each of the following sentenc

es:

1. I have received your e-mail of May 5 ____ many thanks. A. of B. at C. with D. by2. the two companies have been dealing ____ each other for

more than 20 years. A. in B. with C. on D. for3. We prefer ____ the goods in wooden cases rather than ___

_ them in cartons. A. to pack, pack B. packing, packing C. to pack, to pack D. packing, to pack4.. They are likely ____ their business public( 上市 ) next ye

ar. A. to taking B. taking C. taken D. to take

5. A new survey(调查 ) reveals that young people prefer text message( 短信 )____ phone calls when using mobile phones.

A. than B. for C. on D. to6. We prefer that you ____ the size of your order before we

make you a quotation. A. indicate B. must indicate C. can indicate D. will indicate7. You are requested to give us your lowest quotation ____

CIF basis. A. in B. to C. by D. on

8. According to your instructions, we have today covered insurance ____ $50,000 ____ your order of color TV sets.

A. for, on B. on, against C. for, against D. on, with9. Please effect insurance ____ War Risk in addition to All

Risks ____ the amount of 10,000 yuan ____ our order No.505.

A. for, for, on B. against, on, for C. against, for, on D. with, for, for10. We have covered your goods ____ $100,000 ____ PIC

C. A. for, with B. against, for C. on, at D. at, for

Key1.C 2.B 3.A 4.D 5.D 6.A 7.D 8.A 9.C 10.A

1. We are now replying to your letter of March 15 ____ insurance. Which of the following is NOT right?

A. in regard to B. with regard to C. regarding D. as regard2. Please let us know your premium (____) which you

cover insurance against All Risks. A. with B. at C. for D. against3. The extra premium will be charged (____ )your

account. A. to B. at C. on D. with

4. We will effect insurance against All Risks as requested, charging premium and freight (____ )the consignees.

A. to B. for C. on D. with5. According to the nature of the cargo, this cover (____) a

5% franchise. A. is subject to B. is subjected to C. subject to D. subjected to6. Do you( ____ )against All Risks and TPND on this item?

Which of the following is NOT right here? A. insure B. cover C. cover insurance D. insure us

7. We have insured the goods ___10% above the invoice value.

A. With B. at C. for D. on8. Please inform us ____ the details of the shipment as soon

as you ship the goods. A. with B. for C. on D. of9. In reply ____ your fax of October 16, we would like to g

ive you the following information. A. to B. with C. of D. for10. The goods are ready for shipment, but we can not load t

hem ____ of your L/C. A. with the absence of B. at the absence of C. in the absence of D. to the absence of

Key1.D 2.B 3.A 4.A 5.A 6.B 7.C 8.D 9.A 10.C

Writing Write a letter to tell the exporter

that eight typewriters under order No.4567 were damaged. Request the exporter to file claim against insurance company and deliver eight replacement typewriters.

Dear sirs, When the S.S. “Prince” arrived at

Singapore on 16 June, it was noticed that one side of case No.7 containing the “Fish” Typewriters was split. We therefore had the case opened and the contents examined by a local insurance surveyor in the presence of the shipping

company’s agents. The case was invoiced as containing ten typewriters, eight of which were badly damaged.

We enclose the surveyor's report and the shipping agents’ statement. As you hold the insurance policy we should be grateful if you would take the matter up for us with the insurers.