Unit 7 Is There a Golden Rule in Business？

The history of insurance and Lloyd’s(劳埃德保险者协会 )

-in 1688 by Edward Lloyd, (British)-the center of the world’s shipping intelligence-an international market for marine and other forms of insurance-underwriters, syndicates, brokers

Insurance policy

• the insured• the insurer• insurance man or insurance broker• ownership• value• length of time• coverage• premium• compensation

General Average(共同海损 )

A voluntary and deliberate loss and refers to sea hazards that affect all the cargo on a ship. It means that whichever shipper loses all or part of his cargo, all the others will club together to recompense him for his loss.

Particular Average（单独海损）

It is an involuntary and accidental loss, a particular loss which is suffered by the one whose goods are partly lost or damaged, but not voluntarily incurred, such as by jettisoning, which are covered by General Average.

Total Loss (全损 )

The total loss of the entire shipment resulting from the perils on the sea such as beaching, grounding, stranding`, collision, natural calamities, fire, etc. •Actual total loss (实际全损 )— the thing insured is completely lost or so badly damaged that is not worth repairing.• Constructive total loss ( 推定全损）— the ship or cargo is so badly damaged that the cost of repair would be greater than the market value.

Free of Particular Average (F.P.A)平安险

The goods are covered only against hazards to which all the consignments on the same vessel(or other means of transport) are subject, and not against hazards affecting only the insured’s consignment.

With Particular Average (W.P.A.) or With Average (W.A.)水渍险

It means that in addition to General Average and total loss, goods are covered against partial loss due to major perils, but not due to minor perils.

All Risks (全险）

The insurer is responsible for all total or partial loss of , or damage to, the insured goods arising from natural elements or form sea peril.

General additional risks（一般附加险）

Theft, pilferage, and non-delivery (TPND), fresh water or rain water damage, short weight, intermixture and contamination, leakage, breakage, hook damage, rust, sweating and heating, etc.

Special Additional Risks（特殊附加险）

Failure to Delivery Risk, War Risk, and Strikes, Riots and Civil Commotions (S.R.& C.C.)

Floating Policy & Cover Policy

Insurance policy --- the most commonly used document in marine insuranceFloating Policy---for regular exporters to cover shipments of a year. It cannot be lodged with other negotiable documents for every shipment, so a certificate of insurance takes its place.Cover Policy/Open Cover---not reducing, valid for 12 months, no total figure for all shipments, only a maximum figure for any individual shipment.

Adjustment of the claim

-Policy possessor owns the rights to lodge a claim.

-Documents needed for a claim:•Survey report•A copy of B/L•The commercial invoice•The insurance policy•A covering letter requesting payment