Unit 11 Insurance 保险

世纪商务英语外贸函电 www.themegallery.com Unit 11Insurance保险

Contents Basic Knowledge Concerned • Part One Letter-writing Guide • Part Two Other Commonly Used Expressions and Sentences • Part Three Sample Letters • Part Four Practical Training • Part Five www.themegallery.com

Part One 1. The Significance of Insurance Insurance is an essential procedure in international trade. The insured can obtain the guarantee from the insurance company (the insurer) to get compensation of the cargo damaged or lost in transit at a relatively small cost namely the insurance premium. Almost every international transaction by sea gets involved in insurance because the risks in the sea voyage are unexpected and varied. Therefore it now has become the common sense that insurance should be bought in an international transaction, either by the exporter or the importer. www.themegallery.com

Part One 2. The Coverage of Insurance Usually, there are three kinds of basic risks package. They are FPA (Free from Particular Average), WA/WPA (With Particular Average) and AR (All Risks). The insured needs to choose one of them to insure against. In terms of the range of risks coverage, FPA is included in WA/WPA, and WA/WPA is included in AR. There are also eleven types of General Additional Risk. Neither of them can be insured against alone. The insured is allowed to insure against one or several of them on the basis that he has already chosen FPA or WPA. The insured choosing AR does not need to consider them as AR has naturally covered all of them. The eleven types of General Additional Risk are (1)Theft, Pilferage and Non-Delivery (TPND), (2)Fresh Water &/or Rain Damage (FWRD), (3)Risk of Shortage (4)Risk of Intermixture and Contamination, (5)Risk of Leakage (6)Risk of Clash & Breakage, (7)Risk of Odour, (8)Heating & Sweating Risk (9)Hook Damage Risk, (10)Risk of Rust, (11)Breakage of Packing Risk. Other than the above risks there are another eight kinds of Special Additional Risk, against one or several of which the insured can insure the cargo. www.themegallery.com

Part One 3. The Role of the Insurance Policy If the damage or loss of the consignment, which has been insured, occurs during the period of transportation and discharge, the insured will certainly lodge a claim asking for indemnity from the insurer. Under such circumstances the insurance policy of the cargo becomes an indispensable document to be presented. Under CIF term and under payment method of Letter of Credit (L/C), after shipping the goods the exporter will go to the negotiating bank requesting the payment of the shipped cargo by submitting several required documents, among which the insurance policy is a must together with the Bill of Lading(B/L), commercial invoice and draft, etc. www.themegallery.com

Part Two www.themegallery.com

Part Three Expressions (1) 1. the insured 被保险人 2. the insurer 承保人,保险人 3. insurance company 保险公司 4. insurance agent 保险经纪 5. insurance policy 保险单 6. insurance value/amount 保险金额 7. insurance premium 保险费 8. insurance coverage 保险范围(可指险别和/或金额范围) 9. Free from Particular Average (FPA) 平安险 10. With Particular Average (WPA/WA) 水渍险 www.themegallery.com

Part Three Expressions (2) 11. All Risks (AR) 一切险 12. General Additional Risk 一般附加险 13. Special Additional Risk 特殊附加险 14. War Risk 战争险 15. with a franchise of... % 有一个……%的免赔率 16. cover/effect/arrange/take out/attend to/provide/handle insurance 投保,买保险 17. cover the goods against... risk 为货物投保……险 18. insure... with... insurance company 向……保险公司投保……货物 19. for one’s account 由……支付 20. the People’s Insurance Company of China (PICC) 中国人民保险公司 www.themegallery.com

Part Three Typical Sentences (1) 1. We will insure the goods against WPA and TPND for the invoice value plus 10%. 2. Many export-oriented Chinese manufacturers choose to insure their consignment with the PICC. 3. We would like to take out insurance on your behalf. 4. Considering the port of destination is not far from the war zone we suggest you to cover the insurance for the shipment against All Risks and War Risk. 5. When we cover insurance for goods made of glass it is necessary that Risk of Clash & Breakage is included. 6. I’m calling to ask whether your insurance company allows the foodstuffs to be insured against the risk of deterioration. 7. As the exporter, we follow the prevalent practice that our CIF price covers the insurance against WPA and any extra premium of additional risks should be for the importer’s account. www.themegallery.com

Part Three Typical Sentences (2) 8. It has become the common sense that the insurance of goods traded on the basis of CFR or FOB term is supposed to be arranged by the buyer. 9. Unless otherwise regulated in the L/C, the negotiation bank will permit the beneficiary/exporter to deliver either of insurance policy, insurance certificate or open policy for negotiation. 10. To cover a special additional risk only costs a slightly higher premium. 11. FPA covers all total losses incurred by natural calamities and/or accidents, and partial losses by natural calamities. 12. We want to know your lowest rates FPA. 13. The premium of the cargo is at the rate of 1.5% of the goods value you declare to insure. 14. In the absence of specific instructions from our clients we usually cover insurance against WPA and War Risk. www.themegallery.com

Part Three Typical Sentences (3) 15. The shipment has been insured as per warehouse-to-warehouse clause and subject to the Ocean Marine Cargo Clauses. 16. Insurance provides a pool or fund into which many contribute their money and from which the few suffering losses are compensated. 17. These leather shoes need to be insured against the Fresh Water &/or Rain Damage (FWRD) and the risk of Intermixture & Contamination in addition to WPA. 18. The policy holder must submit the claim within 30 days after the losses of the insured cargo are found. 19. The insurance company insures this risk with a 5% franchise. 20. We regret our inability to comply with the buyer’s request for covering insurance for 150% of the invoice value, because our contract stipulated that insurance should be covered for 110% of the invoice value. www.themegallery.com

Part Four Sample 1 Buyer’s Insurance Dear Sirs, Re. Order No.426 With regard to1our order of 1 000 leather jackets we have issued an irrevocable L/C at sight which takes your company as the beneficiary. You will be advised by Guangzhou Branch of the Bank of China very soon. So you can prepare for production and shipment without any concern2. There is another issue we want to request here. As we know, the price that has been stipulated in both of the S/C3and L/C is based on CFR term and hence insurance lies within our responsibilities4. For the sake of convenience we wonder whether you could have the goods insured, on behalf of us5, against WPA and TPND6for 110% of the invoice value at your end. The premium charge is, of course, for our account7. Hope this request will meet with your approval. Yours faithfully, www.themegallery.com

Part Four Sample 2 Reply to the Letter of Sample 1 Dear Sirs, Re. Order No.426 This is to acknowledge the receipt of your letter informing the opening of the L/C and requesting us to cover insurance for the captioned goods1on your behalf. We are willing to accept your request. Before completing the shipment we will insure the consignment with the local branch of the PICC as per the risks coverage and insured value you mentioned. Then we will send you the insurance policy together with a debit note2for the premium fee. We hope we could serve your company to your satisfaction. Yours faithfully, www.themegallery.com

Part Four Sample 3 The Insured Asking for Quotation from the Insurer Dear Sirs, We are a Guangzhou-based1 import & export company and going to ship 10 containers of household electrical appliances to Rome next week. We want to insure the goods with you, who we know has a prestigious2position in the insurance industry, if the rate is within our expectation. Would you please quote us your most favorable premium rate3of the said goods for the insured value of US$150 000 against All Risks plus War Risk? The insurance is from our warehouse to the port of Rome. We are awaiting your information. Yours faithfully, www.themegallery.com

Part Four Sample 4 Reply to the Letter of Sample 3 Dear Sirs, We acknowledge the receipt of your letter inquiring about the rate of your household appliances exported to Rome. The premium for the above-mentioned goods is at the rate of 0.8% of the insured value declared against All Risks plus 0.4% against War Risk1. You will find it most favorable among the market-leading2insurers. If the rate is acceptable to you, please let us know at your earliest convenience so that we could prepare and send the policy to you in due course. Yours faithfully, www.themegallery.com

Part Five Beginning Training 1. Put the following English into Chinese. (1) (1) the insurer 保险人/保险公司 (2) the insured 被保险人 (3) the insured value 保险金额 (4) the premium 保险费 www.themegallery.com

Part Five 1. Put the following English into Chinese. (2) (5) insurance policy 保险单 (6) to insure... against... for... 就……货物以……保险金额投保……险 (7) favorable rate 优惠的保险费率 (8) Free from Particular Average (FPA) 平安险 (9) With Particular Average (WA/WPA) 水渍险 www.themegallery.com

Part Five 1. Put the following English into Chinese. (3) (10) All Risks (AR) 一切险 (11) the People’s Insurance Company of China (PICC) 中国人民保险公司 (12) Theft, Pilferage and Non-Delivery (TPND) 偷窃及提货不着险 (13) Please insure the following goods against All Risks plus War Risk. 请为以下货物投保一切险加战争险。 (14) The additional premium is for the buyer’s account. 额外的保费由买方出。 www.themegallery.com

Part Five 1. Put the following English into Chinese. (4) (15) Enclosed please find the bill of lading and insurance policy. 请查收随信附上的提单和保险单。 (16) Insurance should be arranged by the seller in the CIF trade term. 在CIF贸易条款下保险事宜由卖方安排。 (17) The insurance must be covered for the amount of the invoice value plus 15%. 以发票金额再加15%的保险金额投保。 (18) Please kindly quote us your rate for the insurance cover. 请为我方拟投保的这一险种报价。 www.themegallery.com

Part Five 1. Put the following English into Chinese. (5) (19) We request you to extend the insurance coverage to include Risk of Breakage. 我们请贵方扩大保险范围，增保破碎险。 (20) Should the loss or damage be incurred, you might, within 60 days after the arrival of the shipment, lodge a claim with the insurer. 如果发生了货物损失或损坏的话，你们可在货物抵港后的60天内向保险公司提出索赔。 www.themegallery.com

Part Five 2. Read the following letters and choose the best one from the given answers for the missing prepositions. with; at; against; by; for; of; from; to; within Letter 1 Dear Sirs, We wish to insure the following leather shoes (1) the PICC (2) WPA including TPND and FWRD (3) the amount of US$3 000. These goods are now lying (4) Deck No.3 Huangpu Port of Guangzhou waiting to be shipped (5) S.S. “Morning Star” due to sail for Antwerp tomorrow morning. Could you cover the insurance for the above goods, on our behalf, with Guangzhou Branch of the PICC immediately﹖ Yours faithfully _________ with __________ against _______ for ______ at by ________ www.themegallery.com

Part Five with; at; against; by; for; of; from; to; within Letter 2 Dear Sirs, This is to acknowledge the receipt (1) your letter asking us to cover the leather shoes (2) Guangzhou (3) Antwerp on behalf of you. We have gone through all the insurance procedures with the PICC Guangzhou Branch. The premium is (4) the rate of 0.8% of the declared value against the risks you demanded. The insurer is preparing the policy and will send to you (5) one day or two. And they have confirmed that the consignment is held covered as from today. Yours faithfully, _______ of ________ from _______ to _______ at within _________ www.themegallery.com

Part Five Intermediate Training 1. Put the following Chinese into English. (1) (1) 保险公司 the insurer (2) 被保险人 the insured (3) 投保 cover/effect/arrange/take out/attend to/provide/handle insurance (4) 保险金额 insurance value/amount www.themegallery.com

Part Five 1. Put the following Chinese into English. (2) (5) 保险费 insurance premium (6) 平安险 FPA (7) 水渍险 WPA/WA (8) 一切险 AR (9) 一般附加险 General Additional Risks www.themegallery.com

Part Five 1. Put the following Chinese into English. (3) (10) 特殊附加险 Special Additional Risks (11) 偷窃､提货不着险 TPND (12) 按发票金额的……%为……货物投保……险 insure… against… for…% of the invoice value (13) 碰损､破碎险是一种一般附加险｡ The Risk of Clash and Breakage is a kind of General Additional Risk. www.themegallery.com

Part Five 1. Put the following Chinese into English. (4) (14) 水渍险不仅包括平安险的各种责任,还负责赔偿由自然灾害引起的部分货物损失｡ The responsibilities of WPA not only include all responsibilities of FPA but also cover the partial losses or damage of goods caused by natural calamities. (15) 一切险的责任范围包括平安险､水渍险以及另外11种一般附加险｡ The coverage of All Risks includes the total coverage of FPA, WPA and another eleven general additional risks. (16) 给货物投保时须在平安险､水渍险及一切险这三种基本险中选择一种｡ When you have the goods insured, you must choose one of the following three basic insurance coverages, FPA, WPA or AR. www.themegallery.com

Part Five 1. Put the following Chinese into English. (5) (17) 一般附加险和特殊附加险不能单独投保,只能在选择好基本险后追加｡ General additional risks and special additional risks must be insured against only after a basic insurance coverage is chosen. They are not allowed to be insured against solely. (18) 我方按惯例将以发票金额的110%为这批出口丝绸衬衣投保一切险和战争险｡ As per the traditional practice we shall insure the shipment of exported silk shirts against All Risks and War Risk for 110% of the invoice value. www.themegallery.com

Part Five 1. Put the following Chinese into English. (6) (19) 在CIF条件下我们通常以发票金额的110%为买方投保水渍险,假设买方想增加保险金额或扩大保险范围,则超出部分的保险费由其本人承担｡ Under CIF term we usually insure for the buyer againt WPA for 110% of the invoice value. If the buyer wants to raise the insured value or extend the insurance coverage, the additional premium will be for his own account. (20) 随函附上保险单,以便贵方在收货时万一发现货物损坏的话可及时向保险公司驻目的港的分支机构提出索赔｡ We have enclosed the insurance policy so that you can lodge a claim with the insurer’s branch office at the destination port in due course should any damage or loss be found when you receive the goods. www.themegallery.com

Part Five 2. Supply the missing words in the blanks of the following letter. The first letters are given. Dear Sirs, Thank you for your letter of August 20, informing us (1)t you are ready to (2)i 500 cartons of coffee mugs against All Risks and (3)B . As we know the (4)f goods such as glassware and chinaware is insured against the Risk of Breakage at a rate as high as 5% of the insured value. And the insurer does not accept (5)c for loss less than 5% of the entire consignment. Therefore occasional minor breakage which possibly occurs will not be compensated for. In my opinion serious breakage can doubtlessly be (6)a so long as special care is given to the (7)p and handling of the goods. We believe that the (8)c of All Risks is enough. Thank you anyway for bringing up the matter to our (9)c and we are looking forward to (10)r your shipping advice timely. Yours faithfully _______ ________ hat nsure ___________ reakage _________ ragile _________ laims ___________ voided ____________ ___________ acking overage _______________ onsideration ___________ eceiving www.themegallery.com

Part Five Advanced Training 1. Letter Composing (1) Compose a letter on behalf of Mr. Liu Ming, sales manager of Export Department, according to the given information and message. Then arrange the necessary parts in proper form as they should be set out in a business letter. Information: (1) Sender’s Name: Guangdong Foreign Trade Development Corp. (exporter) (2) Sender’s Address: 779 East Dongfeng Road, Guangzhou, China (3) Date: August 15, 2007 (4) Receiver’s Name: H. J. Wilkinson & Co. Ltd. (importer) (5) Receiver’s Address: 245 Lombart Street, Lagos, Nigeria www.themegallery.com

Part Five 1. Letter Composing (2) Message: (1) 告诉对方你已收到他们要求你代办保险的信函｡ (2) 告诉对方你愿意代表他们在中国人保广州分公司为以FOB条件出口给他们的那批高级皮鞋投保一切险加战争险,保险金额为发票金额的110%｡ (3) 届时会将保险单及还款通知一并寄给对方｡ (4) 函中同时表现出必要的商务礼仪和进一步扩大商业合作的愿望｡ www.themegallery.com

Part Five 2. Letter Replying (1) Read the following letter and then compose a letter in reply to it. H. Simpson & Co. LTD. 298 South Street, Boston, USA September 16, 2007 Guangdong Textiles Import & Export Corporation 779 East Dongfeng Road Guangzhou China Dear Sirs, This is to acknowledge the receipt of your letter of September 13 confirming that the L/C had been advised to you by the Bank of China and you had begun to prepare the silk shirts we ordered. www.themegallery.com

Part Five 2. Letter Replying (2) We refer you here to the matter of insurance. As stipulated in both of the S/C and the L/C you are responsible for insuring the goods against WPA and TPND at the invoice value plus 10%. We wonder, however, considering the vulnerability and high value of the said silk shirts, whether the coverage can be extended to include All Risks plus War Risk and the insured amount be raised to 150% of the invoice value. We look forward to your comments. Yours sincerely John Smith Manager of Import Department www.themegallery.com

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Unit 11 Insurance 保险