Module 7 International Trading Business,Project 21 Doing International Cargo Insurance & Claim,Objectives,understand the basic and additional coverage of cargo insurance and the steps of lodging a claim.,2. find ways to improve your English skills and performance on coverage of cargo insurance and claim.,3. master the basic words and expressions about general description of coverage of cargo insurance and claim.,Contents,Lead-in,1. Do you think there is some risk in transporting goods? How to avoid or share the risk? Yes, we should cover the insurance for our goods.,Activity 1 -Words & Terms,Learn the new words and terms.,Activity 1 -Task 1,Material 1: Obtaining Cargo Insurance - necessity: traders should insure their goods against loss, damage or delay in transit. - form of policy: open cover and voyage policy,Open cover - coverage can apply to either an unlimited number of shipments within an agreed timeframe or for an indefinite period until either party cancels the agreement - contain a description of each shipment and the departure and destination points Voyage policy - refers to the specific shipment for which cover is sought,Activity 1 -Task 2,Decide whether the following statements are True or False. Please write T for true and F for false in the blanks.,1) _ Generally, the more experienced the insurer is, the less premium the insured should pay. 2) _ An open cover can apply to either an unlimited number of shipments within an agreed timeframe or for an indefinite period until either party cancels the agreement. 3) _ If you dont export often, you may prefer to buy a voyage insurance policy.,F,T,T,Activity 1 -Task 3,Choose the best answers. 1) There are a number of possible options when deciding where to go for a cargo insurance policy: _. a. a marine insurance broker b. a general insurance business c. a freight forwarder d. agency bank e. local Chamber of Commerce,a, b, c, d, e,2) Cargo Insurance does not cover _: a. Loss or damage caused by the intentional act or fault of the Insured. b. Loss or damage falling under the liability of the consignor. c. Loss or damage arising from the inferior quality or shortage of the insured goods prior to the attachment of this insurance. d. Loss or damage arising from normal loss, inherent vice or nature of the insured goods, loss of market and/or delay in transit and any expenses arising therefrom.,c,Activity 2 -Task 1,Study the material and briefly describe the guidelines for insurance claims we should usually follow. Material: How to Claim on Your Insurance Policy,Question for hint: 1. What are the major steps to claim on our insurance policy? Step 1: follow some rules Step 2: file a letter of claim against the freight forwarder or carrier Step 3: send full details of the claim to the insurer (through the seller Step 4: claim is settled,2. What are the preparations should be made before a claim? 1) carry out a thorough inspection of all the goods and note damaged or missing items; 2) take any steps necessary to minimize or prevent further damage; 3) make a note of any expenses incurred in carrying out the above for the insurer to reimburse; 4) keep as evidence the shipping container, packing materials, damaged merchandise and shipping documents; 5) contact the insurer (or broker if appropriate) so that a survey of damage can be arranged.,3. What are the usual ways to settle a claim? 1) making refund and compensating for direct losses or expenses; 2) selling the goods at lower prices; 3) replacing the faulty goods with perfect ones.,4. In what case should the claim be lodged against the seller? The goods delivered are inconsistent with the contract stipulations, the buyer should make a claim against the seller.,Activity 2 -Task 2,Translate the following sentences. 1) In case the goods delivered are inconsistent with the contract stipulations, the buyer should make a claim against the seller within the time limit of re-inspection under the support of an inspection certificate or survey report issued by a nominated surveyor. 如果所交货物与合同规定不符，卖方应当在复验期内凭制定检验官签发的检验证书或检验报告向卖方索赔。,2) If the claim is justified, prompt and well-supported, it can be settled in the following ways: making refund and compensating for direct losses or expenses; selling the goods at lower prices; or replacing the faculty goods with perfect ones. 如果索赔是合理、紧急、有充分证据的，可以如下方式解决：退款或直接赔偿损失或费用；降价出售货物或者用完好的货物替换问题货物。,Activity 3 -Task 1,Study the materials in groups and briefly summarize the differences between the basic coverage.,Material 1：Types of Insurance in Marine Transportation,Basic coverage,Additional coverage,F.P.A Free from Particular Average,W.A./W.P.A. With Average/Particular Average,A.R. All Risks,general additional coverage,special additional coverage,confines insurers liability to total loss of the insured cargo and partial loss for damage to the cargo answerable only where the carrying vessel is grounded, sunk