外语系 纺织商务英语 Textile Business English

Module Eight Packing, Shipment & Insurance

Task 3 Insurance

1. C ategories of insurance 2. D ecide on how to buy cargo insurance 3. D iscuss insurance issues Learning Objectives

Lead-in—Group discussion 1. Why do we need to have the cargo insured? 2. Are insurance policies difficult to understand? Why? 3. Can insurance companies cover all of your losses in transit?

Useful expressions and patterns  I.would like to ask how to buy cargo insurance  2. Is there anything needed to take to the insurance company for compensation?  3. Are there any other clauses in marine policies?  4. You can lodge a claim against the carrier or the party concerned.  5. The insurance company will make the payment to the consignee and deal with the carrier.  6. All our export goods sold on CIF terms are insured with the PICC.  7. Could you cover the War Risk for us?  8. They can provide a broad range of marine insurance  9. In case there is a damage or loss, how about the claim?.  10. Now I know what to do about our loss of the consignment.

Listening Dialogue 1 Notes to the dialogue  1. cargo insurance 货物保险。  2. marine, land, aviation 水，陆，空运。  3. commodities 商品。  4. refrigerated cargo 冷冻货物, 冷藏货物  5. poultry 家禽  6. premium rate 保险费

Dialogue 2 Notes to the dialogue 1. CIF 到岸价 2. PICC 中国人民保险公司 3. FPA, WPA, All Risks and Extraneous Risks 一切险 额外险 4. WAR Risks 战争险 5. make a claim 要求索赔 6. prompt and equitable 迅速公正 Listening

Listen to dialogue 2 and complete the following blanks:  1. PICC can provide _____________ insurance, such as FPA and WPA.  2. _________ will pay the premium for War Risks.  3. The skirts will be covered ________ WPA and War Risks for _______ % of invoice value.  4. Claims of damage must by supported by _____________________.  5. PICC enjoys good reputation because they are always _____________ and _________________ in setting claims.

Listening Dialogue 3 Notes to the dialogue  spotty 有污点的。  in the case of 在 … 情况下。  minor/ major perils 小风险 / 大风险。  sinking, collision and fire 沉没、碰撞和火灾

Listening  Listen to dialogue 3 and fill the blanks with what you hear.  1. Generally speaking, under a CIF term, it covers only ___________ and, at 110% of the invoice value.  2. WPA policy covers you against ____________ loss in all cases, while FPA policy only covers you against _____________ loss in the case of minor perils.  3. All Risks is on the__________ kind of ____________ coverage, but it doesn’t really cover all risks.

Reading and Analyzing Cargo Insurance

Reading and Analyzing Brainstorming Question How to decide on insurance?

Cargo Insurance Cargo insurance (also called marine cargo insurance) covers physical damage, or loss of your goods whilst in transit by land, sea and air and offers considerable opportunities and cost advantages if managed correctly.

Cargo Insurance Many traders do not want to become involved in arranging this type of insurance because they feel they do not have sufficient knowledge. They see it as an unnecessary expense involving extra administration, and make the mistake of allowing suppliers or customers to control this vital area of business. This loss of control not only increases the difficulties of implementing an effective trade risk management strategy, but can also have far reaching effects on profitability.

Cargo Insurance Fortunately, this attitude is changing, with more and more companies following the lead of many of the 'blue-chip' manufacturing and trading giants of the UK economy who tend to take full control of this type of insurance.

Cargo Insurance When you are looking at the types of cargo insurance available, you may come across the term General Average. This is one of the oldest principles of cargo insurance and relates only to ocean and sea voyages but is still relevant in today's trading environment. General Average covers the situation where damage or loss of certain goods occurs so that the remaining cargo and the means of transport are saved. For example, goods may sustain water damage during fire fighting. In this situation, if General Average is declared, all the parties involved must contribute to covering the loss.

Cargo Insurance Cargo insurance is usually provided by the means of one of three Institute Cargo Clauses - A, B or C, plus War Clauses and Strikes Clauses. Simply put Cargo Clauses A provide the most cover with B and C giving less coverage which is reflected in reduced premiums for the lower cover (somewhat similar to car insurance cover with comprehensive, third party, fire and theft, and third party policies).

Cargo Insurance Also there is an Institute Cargo Clauses (Air) for movement by air, which is equivalent to the A clauses. Your insurance company or broker will be able to give details of exactly what cover is given by each clause so you can choose the most appropriate for your business needs and trading patterns.

New Words and Expressions  1.physical damage 有形损失  2. whilst conj. 时时, 同时  3. considerable adj. 相当大 ( 或多 ) 的, 值得考 虑的, 相当可观的  4. cost advantage 成本优势  5. sufficient adj 充分的  6. administration n. 管理, 经营, 行政部门  7. vital adj. 生死攸关的, 重大的

New Words and Expressions  8. implement vt. 贯彻, 执行  9. risk management 风险管理  10. blue-chip 独特的, 值钱的  11. trading giants n. 大型贸易公司  12. tend to 趋向  13. voyage n. 航海, 航行  14. come across 遇到，偶遇  15. Institute Cargo Clauses 协会货物保险  16. War Clauses and Strikes Clauses 战争条款和罢工条款  17. premium n. 保险费  18. third party, fire and theft 第三者责任、火灾盗窃险  19. equivalent adj. 相等的, 相当的, 同意义的

Notes to the Passage 1. Cargo insurance (also called marine cargo insurance) covers physical damage, or loss of your goods whilst in transit by land, sea and air and offers considerable opportunities and cost advantages if managed correctly.  货物保险 （也称作海运货物保险）承保海、陆、 空运中的有形损失和货物遗失，如果处理得当 的话，会给客户带来相当大的补偿机会和成本 优势。

Notes to the Passage 2 ． This loss of control not only increases the difficulties of implementing an effective trade risk management strategy, but can also have far reaching effects on profitability. 管理不到位不仅会增加对有效交易执行风险管理的策略的难度，而且可能对 收益率产生严重影响。 far-reaching : Eg: Then came a new development that had far-reaching effects 后来发生了一个有深远影响的新情况。。 This war had far-reaching consequences in all the capitalist countries. 这次战争在所有资本主义国家都产生了深远的影响。 3. General Average covers the situation where damage or loss of certain goods occurs so that the remaining cargo and the means of transport are saved. For example, goods may sustain water damage during fire fighting. In this situation, if General Average is declared, all the parties involved must contribute to covering the loss. 共同海损包含为保护其余货物和运输工具而造成的货物损失或遗失。例如， 救火过程中货物可能进水，在这种情况下，如提出共同海损，所有人都必须 为损失承担责任。

Notes to the Passage  4. Cargo insurance is usually provided by the means of one of three Institute Cargo  Clauses - A, B or C, plus War Clauses and Strikes Clauses.  货物保险通常按照《协会货物保险》 A ， B ， C 条款，附加战争条 款和罢工条款的规定。  5. Simply put Cargo Clauses A provide the most cover with B and C giving less coverage which is reflected in reduced premiums for the lower cover (somewhat similar to car insurance cover with comprehensive, third party, fire and theft, and third party policies).  货物保险 A 中包含 B 和 C 的大部分内容，而 B 和 C 条款保险费用少， 涉保范围也小。（与车险中包含基本险，第三者责任、火灾盗窃险 和第三者强制责任保险有些类似）。

Group Discussion 1.Does All Risks cover all the losses? 2. What’s the difference between FPA and WPA? 3. Why do more and more traders see insurance as necessary expenditure?

Assignment Translate the following the passage Insurance companies are among the most important assets to a nation, for by selling their services abroad they are contributing to the balance of payments position by earning foreign currency. A nation what has to import much of what it needs must export as much as possible to pay for the imports. When the cost of the imports exceeds the income from the exports it is said to have “an adverse balance of trade”. But the deficit is often made up by money earned on services which are sold oversea—what are normally called “invisibles”, because they are not goods or commodities—and insurance is one of the most valuable sources of invisible earning to any nation.

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