22Unit 12 Insurance

Unit12InsuranceObjectives•befamiliarwiththerisksfrequentlyused.•beabletousethewordsandexpressionswidelyusedininsurance.•beabletodiscusstheinsurancetermswithforeigncompanies.Uponcompletionofthisunit,thestudentswill:Warm-upQuestions1.Howmuchdoyouknowaboutmarineinsurance?2.Whatfactorsareinvolvedinamarineinsurance?3.Doyouknowwhat“average”meansintermsofinsurance?Warming-UpWhowilleffectinsurance?Usuallyinsuranceisarrangedbytheexporterortheimporterapproachinganinsurancecompany,whichhasadepartmentspecializingincargoinsurance.Whowilleffectinsurancedependsontheparticulartradetermsadopted.Warming-Up•UnderCIFterms,itisthesellerwhoarrangesinsurancewithaninsurancecompany.•UnderthetermsofFOB,CFR,etc.,thebuyereffectsinsurance,buthemayaskthesellertoarrangeinsuranceonbehalfofthebuyer.Ininternationaltrade,goodstravelinglongdistancestoanothercountry,outofthedirectcontrolofboththebuyerandtheseller,mayfaceallkindsofRiskiscommonineverycorneroftheworld.Risk,whichisthechanceofloss,existsinmostbusinessdecisionsandtransaction.risks•Goodsmustbeinsuredagainstlossordamageateachstageofthejourney.•Insurancewasoriginallyappliedtolossesatsea,whereriskswerealwaysgreatly.•Nowithasbecomeavastsubject,enteringintoalmosteveractivityofhumanbeings.Risksexist•Inthisway,whatevermodeoftransportisbeingused,neithertheexporternorthecustomersuffersanyloss.So,insuranceexiststoprotecttheimporterorexporteragainstthefinanciallosswhichhewouldotherwisesufferincasedamageorlosswasinflicteduponhim.Withoutadequateinsuranceandprotectionoftheinterestsofthosewithgoodsintransit,internationaltradecannotbeguaranteed.ThePurposeofInsurance:•Providecompensationforthosewhosufferfromlossordamage;inotherwords,itisacontracttorestoretosomeone,eitherthefullamountofthelossthatmaybeincurred,oraspecifiedpercentageoftheamountoftheloss.1.Insured2.Applicant3.Insurer4.InsuranceAgent5.InsuranceBroker被保险人投保人保险人保险代理人保险经纪人PartiesInvolved•Insureristhepartytotheinsurancecontractwhopromisetoindemnifylossesorprovideservice,whichusuallyindicatestheinsurancecompanyortheindividualswhorunaninsurancefirm.•Insuredreferstotheonewhobuysinsurancefromtheinsurerortheinsurancecompany.InsuranceBrokerinfact,InsuranceBrokeristhemiddlemanininsurancebusiness.Thebrokerhastheadvantageofbeingfamiliarnotonlywiththetechnicalitiesofmarineinsurancebutalsohasanunbiasedviewoverthecoverageandpremiumratesofferedbyallinsurancecompanies.Heisinagoodpositiontoobtainforhisclientthecoveragethatbestfitshisneedsatthelowestpossiblecost.ContractofInsurance•Acontractofinsurance,whichisgenerallymadeintheformofaninsurancepolicy,isonebetweenapartywhoagreestoaccepttherisk(theinsurer)andapartyseekingprotectionfromtherisk(theinsured).insuredinsurerInsurancepolicypremium•Inreturnforpaymentofapremium,theinsureragreestopaytheinsuredastatedsum(oraproportionofit)shouldtheeventinsuredagainstoccur.Thepremium,beingthenamegiventothesumofmoneypaidbytheinsured,isquotedasapercentageofthesuminsured.•Theinsurancepolicyformspartoftheshippingdocuments.TheScopeofMarineInsuranceCover海洋运输保险的范围一、Perilsofthesea海上风险二、Oceanlosses海上损失三、Maritimecharges海上费用四、Extraneousrisks外来风险(一)Naturalcalamities:自然灾害Theyarecausedbytheforcesresultingfromthechangesofnature,e.g.,vileweather,thunder,lightning,tsunami,earthquake,flood,etc.(二)Fortuitousaccidents:意外事故Theyincludeaccidentsresultingfromunexpectedcauses,thecarryingconveyancebeinggrounded,orincollisionwithfloatingiceorotherobjects,aswellasfireorexplosion.一、Perilsofthesea海上风险1.ActualTotalLoss:实际全损Itmeansthattheinsuredsubjectmatteristotallyandirretrievablylost.2.ConstructiveTotalLoss:推定全损Itisestimatedthattheactualtotallossofcargoisinevitableorthecostofsalvageorrecoverycouldhaveexceedthevalueofthecargo.(一)Totalloss全部损失二、Oceanlosses海上损失1.GeneralAverage:共同海损Itreferstoacertainspecialsacrificeandextraexpenseintentionallyincurredforthegeneralinterestsoftheshipowner,theinsurer,andtheownersofthevariouscargoesabroadtheship.2.ParticularAverage:单独海损Itmeansthataparticularcargoisdamagedbyanycauseandthedegreeofthedamagedoesnotreachatotalloss,i.e.,onlyapartialloss,whichshallbebornebytheownerofthisindividualconsignment.(二)Partialloss部分损失(一)Sueandlaborcharges:施救费用Itshallbecoveredbytheinsurer.(二)Salvagecharges:救助费用Accordingtotherelativelaws,theinsurershallpaytothesalvor.Butthereisaprinciple,i.e.,“nocure-nopay”.Itincludestheft,freshandrainwaterdamage,shortage,leakage,sweatingandheating,intermixtureandcontamination,odor,hookdamage,breakageofpacking,rusting,etc.三、Maritimecharges海上费用四、Extraneousrisks外来风险Asfarasforeigntradeconcerned,therearevariouskindsofriskswhichcanbecoveredunderaninsurancepolicy.Theserisksaredividedinto2catalogues:RisksBasicRisksAdditionalRisks•BASICRISKS基本险SCOPEOFCOVER承保范围OceanMarineCargoInsuranceisbasicallyclassifiedintothefollowingthreeconditions:FreeFromParticularAverage(F.P.A)WithParticularAverage(W.P.A.)AllRisk.“average”,whenusedforinsurancehasnottheusualmeaning.ItisananglicisedtranslationofFranceword,meaningloss.•Whenthegoodsinsuredhereundersustainlossordamage,theCompany(insurer)shallundertaketheindemnitythereforeaccordin