Insurance

1. Insurance • Learning objectives • Students are required to • 1. have an idea about the types of insurance policy. • 2. have an idea about the contents of an insurance. • 3. master the skills of making ( filling in) an insurance policy. • 4. Master the relative English expressions.

2. Insurance • Ability objectives: • Understand Insurance Policy and master the skills of making an insurance policy. • Job projects: • Fill in an insurance policy correctly.

3. Warm-up activities (1-1) • Revision • 1. What is Bill of Lading? • B/L is a certificate issued by carrier to a shipper evidencing that the goods in good condition have been received or shipped on board the named vessel; promising to deliver the goods to the named consignee.

4. Warm-up activities (1-2) • Marine bills of lading are mainly used in international sales of cargos where the carriage of goods is by sea. Generally, the bill of lading has been evidence to prove that the goods have shipped on board a ship，signed by the person (or his agent)，contracts to carry them，and stating the terms on which the goods were

5. Warm-up activities (1-3) • release to consignee which surrender of the documents when arrived destination port by sea. It is not the actual contract，but forms an excellent evidence of the terms of the contract.

6. Warm-up activities (1-4) • 3. What are the functions of Bills of Lading? • All bill of lading should be signed by either • shipping company，captain ，authorized carrier agent. Generally , bill of lading has three main function： • (1) it is a receipt from the carrier to the shipper; • ( 2 ) it is a documents of title; • (3) it is an evidence of the contract of carriage between the carrier and the shipper.

7. Insurance (1-2) • Explanation • In international trade, goods forwarded from the place of shipment to destination have usually to undergo long-distance transport in addition to warehousing , loading and unloading, in the course of which they are subject to various kinds of risks and may sustain loss or damage. • The buyers or the sellers should cover transportation insurance with their underwriters prior to shipment,

8. Insurance (1-3) • so as to have themselves compensated for any conceivable losses of their goods. • By transportation insurance, we mean that the insured, who is usually the exporter or the importer, covers insurance on one or several lot of goods against certain risks for a certain Insured Amount with the insurer i.e. the insurance company, at an agreed premium.

9. Insurance (1-4) • The insurer, having undertaken to insure the goods in transportation, should make a compensation to the Insured in the event of accident whereby loss or damage of the insured cargo results in a claim under the respective Insurance Policy. In our country, The People’s Insurance Company of China underwrites all kinds of transportation insurance.

10. Insurance (1-4) • In our country, The People’s Insurance Company of China underwrites all kinds of transportation insurance. As ocean shipping constitutes the majority of the volume of goods transported in international trade, the Ocean Marine Cargo Clauses are the most important ones of the China Insurance Clauses (CIC) of the said company.

11. Insurance (1-5) • The provisions therein make it clear that Ocean Marine Cargo Insurance is classified into three forms. They are Free from Particular Average (F.P.A.), With Particular Average (W.P.A.) and All Risks. • The F.P.A. covers mainly Total loss and General Average, while the W.P.A. cover Particular Average in addition.

12. Insurance (1-6) • The All Risks cover, in addition to the scope of W.P.A., such Extraneous Risks as Theft, Pilferage & Non-Delivery Risks, Shortage Risks , etc. In case of F.P.A. or W.P.A., one or several kinds of these Extraneous Risks may be covered in addition.

13. Insurance (1-7) • How many kinds of insurance documents are there? What are they? • There are three kinds: • Insurance Policy • Insurance Certificate • Open Policy

14. Example: Insurance clauses in L/C 1.INSURANCE POLICY OR CERTIFICATE IN THREE COPIES MADE OUT TO APPLICANT, COVERING INSTITUTE CARGO CLAUSES(A), AND INSTITUTE WAR CLAUSES(CARGO ), INCLUDING WAREHOUSE TO WAREHOUSE UP TO FINAL DESTINATION AT OSAKA FOR AT LEAST 110% OF CIF VALUE, MARKED PREMIUM PREPAID AND SHOWING CLAIMS IF PAYABLE IN JAPAN .

15. Example: Insurance clauses in L/C 2.INSURANCE POLICIES OR CERTIFICATE IN TWO FOLDS, COVERING F.P.A/W.A/ALL RISKS AND WAR RISKS FOR 120 PCT OF CIF INVOICE VALUE, AS PER CIC DATED 1/1/1981. 3.2/2 SETS OF ORIGINAL INSURANCE POLICY OR CERTIFICATE ，BLANK ENDORSED , COVERING ALL RISKS AND WAR RISKS FOR 110% INVOICE VALUE, SHOWING CLAIMS PAYABLE IN INDIA.

16. 中国平安保险股份有限公司 PING AN INSURANCE COMPANY OF CHINA，LTD. NO.1000005959 货物运输保险单 CARGO TRANPORTATION INSURANCE POLICY 被保险人： 中国平安保险股份有限公司根据被保险人的要求及其所交付约定的保险费，按照本保险单背面所载条款与下列条款，承保下述货物运输保险，特立本保险单。 this policy of insurance witnesses that ping an insurance company of china, lid., at the request of the insured and in consideration of the agreed premium paid by the insured, undertakes to insure the under mentioned goods in transportation subject to the conditions of policy as per the causes printed overleaf and other special clauses attached hereon. 保单号： 赔款地点： 发票或提单号： 运输工具： 查勘代理人： 起运日期： 自 至 保险金额： 保险货物项目、标记、数量及包装； 承保条件： 签单日期： 签发： CHINA TIANTANG INTERNATIONAL TECHNICAL I/E CORP. TORONTO,CANADA IN USD INV. NO.：A123-456 PING AN INSURANCE COMPANY OF CHINA，LTD. TORONTO BRANCH TEL：XXXXX FAX：XXXXX AS PER B/L SHANGHAI AS PER B/L TORONTO USD42,172.00（SAY US DOLLARS FORTY TWO THOUSAND ONE HUNDRED AND SEVENTY TWO ONLY） COVERING ICC(A),INSTITUTE WAR CLAUSES(CARGO),INSTITUTE STRIKES CLAUSES(CARGO),WAREHOUSE TO WA -REHOUSE CLAUSES. ABC 6V CORDLESS DRILL-TT1 798PCS 34KL-B 6V CORDLESS DRILL-TT2 1070PCS 1-728 728CTNS 保险专用章 中国平安保险股份有限公司 04-03-26 张珊

17. Example THE PEOPLE’S INSURANCE COMPANY OF CHINA Head Office: Beijing Established in 1949 INSURANCE POLICY No. This Insurance Policy Witnesses that The People’s Insurance Company of China (hereinafter called “the Company”) At the request of ………………….. (hereinafter called “the Insured”) and in consideration of the agreed premium paid to the Company by the Insured, undertakes to insure the under-mentioned goods in transportation subject to the conditions of this Policy as per the clause printed overleaf and other special clauses attached hereon. Marks & Nos. Quantity Description of Goods Amount Insured

18. Total Amount Insured ………………………………………… Premium ………. Rate ……………….. Per Conveyance ………………………………… Slg. on or abt /Date of Commencement . ……………. From …………………………….. To ……………………………. Conditions: Claim, if any, payable on surrender of this Policy together with other relevant documents. In the event of accident whereby loss or damage may result in a claim under this Policy, immediate notice applying for survey must be given to the Company’s Agent as mentioned hereunder:

19. THE PEOPLE’S INSURANCE CO. OF CHINA, SHANGHAI BRANCH Claim payable at ……………… in …………………………… ------------------------------ Date …………. (Signed) Address： 125 Beihai Rd., Haikou… Fax …………………. Post Code …………… Tel:

20. Job project (1-1) • Fill in the following Insurance Policy according to the given information: • L/C NO. 00901 N1011LC0245 • L/C AMOUNT: USD AMOUNT 76,440.00 • BENIFICIARY: HAINAN PROVICE TRADE IMPORT • AND EXPORT. CORP. • … • LIST OF DOCUMENTS • …INSURANCE POLICY OR CERTIFICATE IN ASSIGNABLE FORM AND ENDORSED IN BLANK FOR 110PCT INVOICE VALUE COVERING ALL RISKS SHOING CLAIM PAYABLE AT BOA VIET HANOI. VIETNAM IN INVOICE CURRENCY IN 1 ORIGINAL.

21. Job project (1-2) • … • GOODS DESCRIPTION: • PHONE LIEU TRANG VI HANG • QUANTITY: 350 CARTONS • UNIT PRICE: USD 258.40/CARTON • THE PRICE UNDERSTOOD CIF HAIPHONE PORT VIETNAM • DETAILS AS PER CONTRACT 87/DD/CNLS DATED 04/07/2001 • Supplementary information: • Name of vessel: CHANGXING 168 V94B • Port of loading: HAIKOU PORT, CHINA • Number of B/L: 02-08-2008

22. Ability Training Task (1-1) • Make out an insurance policy according to the L/C on P133 with the following information: • 1.Contract NO.:01JA7031KL • 2.Commodity: Men’s Shirt • 3. Packing: one dozen in a plastic bag,50 bags to a carton, then in an FCL container. • 4. Shipping per S.S “YIFENG” from Qingdao to Yokohama, B/L No.180

23. Ability Training Task (1-2) • 5.Container No.GF0189, CY TO CY Containerized • 6. Invoice No.QD552 • 7.GR. WT:67378 kgs • 8. Measurement: 3.808 M3 • Suggested answer:

24. THE PEOPLE’S INSURANCE COMPANY OF CHINA Head Office: Beijing Established in 1949 INSURANCE POLICY No. This Insurance Policy Witnesses that The People’s Insurance Company of China …….At the request of …………………………………………….…….. ………………………………………………………………………………………per the clause printed overleaf and other special clauses attached hereon. Marks & Nos. Quantity Description of Goods Amount Insured 09A123 DONYUE KNITWEARS AND HOME- TEXTILES IMPORT AND EXPORT CORPORATION 238 CARTONS ONE CONTAINER USD221958.00 CONTAINER NO. GF0189 MEN’S SHIRTS

25. SAY US DOLLARS TWO HUNDRED TWENTY-ONE THOUSAND NINE HUNDRED FIFTY-EIGHT ONLY Total Amount Insured ………………………………………… Premium ………. Rate （……………….. Per Conveyance ………………………………… Slg. on or abt . ……………. From …………………………….. To ……………………………. Conditions: Claim, if any, payable on surrender of this Policy together with other relevant documents. In the event of accident whereby loss or damage may result in a claim under this Policy, immediate notice applying for survey must be given to the Company’s Agent as mentioned hereunder: AS ARRANGED AS ARRANGED S.S. YIFENG MAY 20, 2001 YOKOHAMA, JAPAN QINGDAO, CHINA COVERING INSTITUTE WAR CLAUSES, INSTITUTE CARGO CLAUSE (ALL RISKS), INSTITUTE S.R.C.C. CLAUSES XXXXXX CO. ADD:

26. THE PEOPLE’S INSURANCE CO. OF CHINA, SHANGHAI BRANCH Claim payable at ……………… in …………………………… ------------------------------ Date …………. (Signed) Address： 125 Beihai Rd., Haikou… Fax …………………. Post Code …………… Tel: 王 荣 ( MANAGER ) YOKOHAMA, JAPAN US DOLLARS MAY 19, 2001 DONYUE KNITWEARS AND HOME- TEXTILES IMPORT AND EXPORT CORPORATION 李明凯