unit 13 insurance
Mr smith, a newzerland businessman,is importing a batch of porcelain ware from china.The price terms have been fixed on CIF
oakland basis. After loading the goods on board ship,Mr smith go to the insurance company to have the porcelain ware insured.
Mr john meets with him in the office of the people's insurance company of china.
Good morning.
Good morning,i'm joe smith, a newzerland businessman and l'm looking for insurance from your company.
Welcome, my name is john,take a seat,please.
Thank you, Mr john.What kind of insurance are you able to provide for my consignment?
We've been able to cover all kinds of risks for transportation by sea,land and air.
I have a batch of procelain ware to be shiped to newzerland,what risks should be covered?
we can server you with a broad range of coverage against all kinds risks for sea transport.such as free from particular coverage,with particular coverage,all risks and extraneous risks.It's better for you to scan this leaflet first.and then make a decision.
FPA,that means free from particular average.
it's good enough ,what do you think?
Surely,you can.do as you pleased.but do you wish to arrange for WPA and additional corverage against risk of breakage.it's suit your consignment.
Perhaps you're right.I'LL have the goods covered as you said.
very good,please fill in the application form.
you need to write every word clearly.
Surely,i'll.Mr,john,i finished.Please help me to have a check to see if everything is correct.
Ok,let me read it.insured,joe smith. description of the goods: porcelain. mode of transprot: the name of vessel,SShuayuan
coverage: wpa plus risk of breakage.
OH,mr smith,why both the loading prot and unloading port are missing?
OH,terriblely sorry.i forgot that.The loading port is xingang and the unloading port is ockland.Here you are.Now,what the insurane premium?
The premium is to be caculated in this way.
First find out the premum rate for a porcelain,that is the porcelain 3 percent
and secondly consider what risks are covered.
what you have covered is WPA plus risk of breakage.so the total premium is
Good, mr john,thank you for your assistance.
Don't mention it. See you again.
See you again.
Dialogue 1
What do your insurance classes cover?
There are three basic covers:namely free from particular average,with particular average,
and all risks.
If we conclude the business on CIF basis,what coverage will you take out for the goods?
Generally speaking,we only insure the goods with particular average,do you cover risks other than WPA? For instance,TPND,risks of leakage,risks of breakage,fresh or rain water
damage?
According to international practice,we did not insure against such risks.unless they are covered for by the buyers.and buyers will pay for the extral premium.
Another thing,we'd like to have the goods insured for 130 percent of the invoice value.
do you think that can be done?
You know our usual practice is insured the goods at 110percent of the invoice vaule.if you insist that you have the goods insured
for 130 percent of the invoice value, i think that can be done.but the premium for the diffrence between 110 percent and 130 percent
of the invoice value shoud be for your account.
That's understood.
Dialogue 2
May i ask a few questions about insurance?
Yes,go ahead,please.
Now,we have given our CIF shanghai price for some steel plates, what insurance rate do you suggest we should get?
Well, obviously,you won't mount all risks covered>
Why not?
Because they are not delicate goods,and won't
likely be damadged on the voyage.FPA will be good enough.
Then i'm arride in understanding that FPA that's not cover partial loss of the nature
of particular average.
That's right,on the orther hand, a WPA policy