世纪商务英语口译教程Unit7.docVIP

Unit 7 Insurance Related Information The Basics of Cargo Coverage 1. “ALLRISK” coverage The broadest form of coverage is “ALLRISK”, which, as a misleading name for an insurance policy, provides wide cover but does contain a number of exclusions. The term “All Risks” should not be taken too literally and in some jurisdictions the term is no longer used. An “ALLRISK” policy insures approved general merchandise in the event of physical loss or damage from any external cause. This includes new packaged goods without unusual susceptibility to loss from breakage, pilferage, or the nature of the goods themselves. “ALLRISK” policies do not cover all losses possible in the course of an international shipment. 2. General Average In order to save a ship in peril of sinking during a storm, some of the cargo may have to be thrown overboard. The ship owner and the owners of the saved cargo obviously benefit at the expense of the owners of the jettisoned cargo. This was deemed unfair and the principle of “General Average” evolved so that all parties would contribute in such a situation. 3. (With) Particular Average (WPA) In ocean marine insurance, Particular Average refers to a loss either partial or total, which falls on one or more property or interest being shipped, as opposed to a general average. 4. Free of Particular Average (FPA) This is an ocean marine policy provision where coverage is provided only if a total loss of the insured property occurs from an insured peril. FPA (American clause) is limited coverage that usually applies to used merchandise, waste materials and goods shipped subject to an ondeck bill of lading. It covers partial and total losses due to FPA perils, which include the sinking, stranding, burning or collision of the vessels or catastrophic perils on shore such as earthquake, derailment, collapse of dock, fire, etc. 5. WAR RISK Special coverage on cargo in overseas ships against the risk of being confiscated by a g