Unit Nine Insurance,Brief Introduction,1.Definition 2.Maritime Losses 3.Types of Coverage 4.Effecting Insurance on Cargoes,The purpose of insurance is to provide compensation for a person or a group of persons or a company who suffer from loss or damage. So it actually is a contract of in-demnity, in which the insurer promises to pay either the full amount of the loss incurred, or a specified percentage of the amount of the loss to be insured.,1Definition,The contract of insurance is made in the form of an insurance policy between two parties: the insurer on the one hand, accepts the risks, and the insured seeks protection from the risk on the other hand.,2Maritime Losses,Maritime Losses are generally divided into two kinds as follows: （1）Total loss （全损） （2）Partial loss also “Average”. （部分损失） There are two kinds of Average in the practice of insurance. 1）General Average （共同海损） 2）Particular Average （单独海损）,3Types of Coverage,As to the coverage of Marine Insurance, the Institute of London Underwriters has a set of universally accepted stipulationsThe Institute Cargo Clauses （ICC）. But we have our own clauses, known as China Insurance Clauses （CIC） made by the PICC. These Clauses are different from the ICC. The principal perils the basic Marine Policy of the PICC insures against under its Marine Cargo Clauses are as follows:,1） Free From Particular Average （FPA） 2）With Average （WA） or With Particular Average （WPA） 3） All Risks （AR） Besides the principal perils, there are also a number of additional risks. Additional risks are usually classified into two categories: General additional risks and Special additional risks.,4Effecting Insurance on Cargoes,The ways of effecting insurance on cargoes differ in their terms of transaction. 1） On the basis of FOB or C&F, the cargoes are to be insured by the importer. 2） On the basis of CIF, the exporter is to insure the goods and to pay the premium.,【Sample 2】 （Reply to the Importers Request）,Dear Sirs， Re: Your Order No. 523 for 600 Bassinets This is to acknowledge receipt of your letter of March 12, 2007. requesting us to effect insurance of the captioned shipment for your account. We are pleased to inform you that we have insured the above shipment with the Peoples Insurance Company of China against All Risks for US $ 80,000.00. The policy is being prepared accordingly and will be forwarded to you by the end of this week to-gether with our debit note for the premium. For your information, we are making arrangements to ship the 800 Bassinets by M.S. “Taishan”, sailing on or about the 29th of March. Yours sincerely， Signature,【Sample 5】,Dear Sirs, Insurance We thank you for your letter of May 20, quoting us 500 metric tons of wheat on CIF terms. We regret, however that we prefer to have your quotations and/or offers on CFR terms. For your information, we have taken out an open policy with the Lloyd Insurance Company, London. All we have to do when a shipment is made is to advise them of the particulars. Further-more, we are on very good terms with them. We usually receive from our underwriters quite a handsome premium rebate at re-gular intervals. In the meantime, we should be obliged if you could supply us with full details regarding the scope of cover handled by the Peoples Insurance Company of China for our reference. We look forward to hearing from you at an early date. Yours faithfully, Signature,【Sample 7】,Dear Sirs， In reply to your letter of September 24 regarding insurance Your customers request for insurance coverage up to the inland city is acceptable On condition that such extra premium is for his account We cannot grant you insurance coverage for 130% of the invoice value, because the contract stipulates that insurance is to be covered for 110% of invoice value. We trust the above information serves your purpose. Mean-while we await your reply. Yours faithfully, Signature,New Words and Expressions,compensation kmpensein n. 补偿，弥补； suffer from 遭遇 indemnity indemniti n. （损害、伤害等的）保障，保险；赔偿，补偿；赔偿金，补偿金 insurance policy 保险单 premium pri:mim n.奖品，奖金；额外补贴 sacrifice skrifais n. 牺牲；牺牲的行为 vt. 牺牲；献出（+for） hull hl n. 船身；船壳 distinct distikt adj. 与其他不同的，有区别的（+from）,in proportion to 与成比例；与相称 bassinet bsinet n. 摇篮，摇篮车 invoice value 发票金额 procedure prsi:d n. 程序 that is to say 也就是说 process pruses n. 过程 in such circumstances 在这种情况下 encounter inkaunt v. 遇到 （to be） for ones account 由支付 insurance policy 保险单,according to 按照 PICC （ Peoples Insurance Company of China） 中国人民保险公司 insurance value ( or insurance amount） 保险金额 Ocean Marine Cargo Clauses 海洋运输货物保险条款 insurance premium pri:mim 保险费 percentage psentid