A person or company that the insured purchases insurance A written agreement between an insurance company and insurance policy policyholder Sum of money paid regularly to an insurance company in exchange of protection against the specified undesired event
Read the following short passage
When you buy insurance, you enter into a written agreement with the insurance company. This agreement is called a policy. The person who buys insurance is the policyholder. According to the agreement, the insurance company promises to pay the policyholder if certain types of losses occur.
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Related Knowledge
Parties involved:
insurance company 保险公司 insurer 保险人 insurance broker 保险经纪人 insurance underwriter 保险承保人 insurance applicant 投保人 insurant, the insured 被保险人，受保人 Insurance beneficiary 保险受益人 PICC (People ’s Insurance Company of China) 中国人民保险公司
( With Particular Average) 水渍险
一切险
(The word ―average‖, when used with insurance means ―loss‖.)
FPA: Free From Particular Average
A limited form of cargo insurance cover under which no partial loss or damage is recoverable. It only provides coverage for total losses and general average emerging from the actual ―sea perils‖ like vessel being stranded, grounded or sunk. 海难
混杂、玷污险
Risk of theft, pilferage and non-delivery (TPND) 偷窃提货不着险
Warming-Up
Under CIF terms, it is the seller who arranges insurance with an insurance company. Under the terms of FOB, CFR, etc., the buyer effects insurance, but he may ask the seller to arrange insurance on behalf of the buyer.
Foreign Trade Letters
Chapter Eleven Insurance
Objectives Warming-Up Related Knowledge Useful words & expressions Sample Letter 1ectives
The policy states exactly what losses the company will pay for. For the protection, the policyholder makes regular payments to the insurance company. Each payment is called a premium.
insurance premium
A company that sells insurance Usually computed by adding the invoice cost, guaranteed freight, other costs, and insurance premium plus a percentage, commonly 10%. This usually represents landed value.
Differences
Two Types of Marine Insurance
Basic Insurance General Additional Insurance
Basic coverage
F.P.A. W.P.A. All Risks
(Free from Particular Average) 平安险
意外事故
Natural Calamities
Heavy weather
lightening
earthquake
Volcanic eruption
tsunami
Fortuitous accidents
fire
explosion
collision
stranded
sunk
grounded
General Additional Insurance
General additional risks —general extraneous risks
一般附加险
Special additional risks —special extraneous risks
特殊附加险
General additional risks
Risk of breakage Risk of clashing Risk of rust Risk of hook damage Risk of deterioration Risk of packing breakage Risk of leakage Risk of shortage in weight/quantity 破碎险 碰损险 锈损险 钩损险 变质险 包装破裂险 渗漏险 短量险
触礁,搁浅
WPA: With Particular Average (WA: With Average)
A wider cover than FPA. It provides extensive cover against all losses or damage due to sea perils throughout the duration of the policy, including partial loss or damage which may be attributed to natural calamities like heavy weather.
Goods damaged, no longer any use
Partial loss:
Particular Average (单独海损)
Caused by disasters /accident
General Average (共同海损)
Caused by intentional measures taken for the safety of goods
Warming-Up
Who will effect insurance?
Usually insurance is arranged by the exporter or the importer approaching an insurance company, which has a department specializing in cargo insurance. Who will effect insurance depends on the particular trade terms adopted.
Goods are always insured in transit through an insurance company or insurance brokers. Claims for damage or loss may be made if the goods have been damaged, lost or interfered within transit. If the consignee is informed that the goods have arrived damaged, he should immediately notify the insurer’s agent at the port of discharge who will survey the goods and issue a survey report. Then he could claim indemnity from the insurer by producing the insurance policy, survey report and other necessary documents.
insurer
Insured amount
The Types of Marine Losses
Total Loss
全部海损
Goods entirely lost
Partial Loss
部分海损
Goods partly lost
Total loss: Actual Total Loss (实际全损) Goods entirely lost Constructive Total Loss (推定全损)