Unit Eleven 外贸英语函电.ppt

Chapter Eleven  Insurance Introduction Insurance is a risk transfer mechanism. The individual or the business enterprise can shift some uncertainty of risk to the insurance company whom the individual or the business enterprise pays premium to. Insurance is provided to cover almost any kind of happenings that may result in loss. Its purpose is to provide compensation for those who suffer from loss or damage. A contract of insurance is one between a party who agrees to accept the risk (the insurer or the assurer, known as the insurance company) and a party who seeks protection from the risk and will receive the benefit of the insurance in case of loss (the insured of the assured) .In return for payment of a premium, the insurer agrees to pay the insured a stated sum (of a proportion of it) if the event insured against should occur. In international trade, the transportation of goods from the seller to the buyer is generally over a long distance by air, by land or by sea and has to go through the procedures of loading, unloading and storing. During this process it is quite possible that the goods will encounter various kinds of perils and sometimes suffer losses. In order to protect the goods against possible loss in case of such perils, the buyer or seller (the insured) before the transportation of the goods usually applies to an insurance company (the insurer) for insurance covering the goods in transit. Losses that goods might suffer during transportation on sea and in the course of loading and unloading fall into two main classes including Total Loss and Partial Loss. Total Loss can be either Actual Total Loss or Constructive Total Loss. The former is that entire shipment is hit by any perils of the sea such as beaching, grounding, collision, sinking, natural calamities, fire, explosion, etc, and totally lost. The latter is that the sh