(龙泉青瓷).ppt

Lesson 8 Insurance Lesson 8 Insurance Learning Point In this lesson, we will learn how to negotiate insurance terms and deal with problems relating to insurance in international business transactions. Lesson 8 Insurance Background Knowledge The international trade is subject to many risks. Ships may sink or consignment be damaged in transit, exchange rates may alter, buyers default or governments suddenly impose an embargo. Therefore, exporters and importers have to insure themselves against many of these risks. In the insurance business, loss is referred to in most cases as the special term “average”, so average in marine insurance simply means loss. General Average is a voluntary and deliberate loss and refers to sea hazards that affect all the cargo on a ship, though only one shipper, perhaps, actually suffers, while Particular Average is an involuntary and accidental loss, a partial loss which is suffered by the one whose goods are partly loss or damaged, but not voluntarily incurred, such as by jettisoning, which are covered by General Average. The most serious loss in marine insurance is a total loss of the entire shipmen, resulting from the perils on the sea such as beaching, grounding, stranding, collision, natural calamities, fire, etc. Lesson 8 Insurance Total Loss falls into two kind: “actual total loss” where the thing insured is completely lost or is so badly damaged that it is not worth repairing, and “constructive total loss” where a ship or her cargo is so badly damaged that the cost of repair would be greater than the market value, they are treated as totally lost, and the insurers are bound to pay the total sum for which the damaged ship or cargo was insured. Exporters or importers arrange insurance cover for their shipment according to the type of goods and circumstances. There is a wide range of standard types of coverage, the three basic ones being as follows: Free of Particular