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CHAPTER XI INSURANCE Objectives: After learning this chapter, you will Lesson 28 Insurance Information Lesson 29 Asking for CIF Terms Introduction In the international trade, it is quite possible for goods to encounter various kinds of risks and losses during the long distance transportation from the seller to the buyer. So exporters or importers need to cover insurance on their goods with insurance companies against different risks. Insurance is defined as financial protection against loss and harm. It is an arrangement by which a company gives customers financial protection against loss, damage, and delay in transit, in return for payment that is called a premium. The insurance company agrees to pay if a specified undesirable event occurs. Arrangements for insurance may be made by either the buyer or the seller, in accordance with the terms of sale. There are many different kinds of insurance and most are rather specific and complicated. All of them have different terms of when money will be paid and different costs. The buyer and the seller must decide on which policies are most beneficial. Sometimes the buyer and the seller pay for different parts of the coverage, especially when the buyer wants extra clauses or terms that the seller does not generally pay for. There are a great number of insurance companies in the world. Lloyd’s is a famous organization incorporated in London in 1871. It is the center of marine insurance which started in a seventeenth century coffee house. Through which, insurance brokers may pace their business. In china, PICC, established in 1949, is the stated-owned insurance organization which underwriters almost all kinds of insurance and has agents in almost all main ports and regions over the world. Since the establishment of the PICC, it has become the practice of Chinese foreign trade corporations to have their imports insured with the PICC. China Export Credit Insurance Corporation (SINOSURE)