UNIT 13 Insurance
Mr Smith, a New Zealand businessman, is importing a bunch of porcelain ware from China. The price terms have been fixed on C&F Auckland basics. After loading the good on board the ship, Mr Smith goes to the Insurance Company to have the porcelain ware insured. Mr Zhao meets with him in the office of the People’s Insurance Company of China.
Z: Good morning.
S: Good morning. I’m John Smith, a New Zealand businessman, and I’m looking for insurance from your company.
Z: Welcome, my name is Zhao, take a seat, please.
S: Thank you Mr Zhao, what kind of insurance are you able to provide for my consignment？
Z：With able to cover all kind of risks for transportation by sea, land and air.
S: I have a bunch of porcelain ware to be shipped to New Zealand. What risks should be covered?
Z: We can serve you with a broad range of coverage against all kind of risks for sea transport. Such as Free from Particular Average, With Particular Average, all risks and extraneous risks. It’s better for you to scan this leaflet first and then make a decision.
S: FPA, that means Free from Particular Average, is good enough. What do you think?
Z: Sure you can. Do as you pleased. But don’t you wish to arrange for WPA? And additional coverage against risk of breakage? These suit your consignment.
S: Em, Perhaps you are right. I will have the goods covered as you said.
Z: Very good. Please fill in the application form. You need to write everywhere clearly.
S: Sure I will. Mr Zhao, I finished. Please help me to have a check to see if everything is correct.
Z: Ok, let me read it. Insurer: John Smith. Description of the goods: Porcelain. Mode of transport & name of vessel: SS Huayuan. Coverage: WPA plus risk of breakage. Oh, Mr Smith, why both the loading port and unloading port are missing.
S: Oh.. Terribly sorry. I forgot that. The Loading port is Xin Gang and the unloading port is Auckland. Here you are. Now what’s it the insurance premium?
Z: The premium is to be calculated in this way. First find out the premium rate for a porcelain. That is 0.3%, and secondary consider what risks are covered. What you have covered is WPA plus risk of breakage. So the total premium is.
S: Good, Mr Zhao, thank you for your assistance.
Z: Don’t mention it. See you again.
S: See you again.
Dialogue1:
A: What do your insurance clauses cover?
B: There are three basic covers, namely, Free from Particular Average,With Particular Average and All risks.
A: If we conclude the business on CIF basic, what coverage will you take out for the goods?
B: Generally speaking, we only insure the goods with particular average.
A: Do you cover risks other than WPA? For instance, TPND, risk of leakage, risk of breakage, fresh or rain water damage.
B: According to international practice, we do not insure against such risks , unless they are called for the buyer. And the buyer will pay for the extra premium.
A: Another thing, we would like to have the good insured for 130% of the invoice value. Do you think that can be done?
B: You know, our usual practice is to insure the goods at 110% of the invoice value. If you insist that you have the goods insured for 130% of the invoice value, I think that can be done. But the premium for the difference between 110% and 130% of the invoice value should be for your account.
B: That’s understood.
Dialogue2:
A: May I ask you a few questions about insurance?
B: Yes, go ahead, please.
A: Now we have given a CIF Shanghai price for some steal price, what insurance rate do you suggest we should get?
B: Well, obviously, you won’t want all risks cover.
A: Why not?
B: Because they are not delicate goods and won’t likely be damaged on the voyage. FPA will be good enough.
A: then am I right in understanding that, FPA does not cover partial loss of the nature of particular average.
B: That’s right. On the other hand, a WPA policy covers you against partial loss in all cases.
A: Oh, I see. Thank you very much.作者: yujason 时间: 2011-1-23 13:02
are they really from textbook??作者: 石头静儿 时间: 2011-1-24 11:03
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