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.pdf7)In case of a contingency, the other party must be notified of it in due time in order to take some specific precautions against the consequences of this contingency.
8)The fact of a force majeure must be confirmed by a special document; otherwise the sellers are not released from their obligations.
9)The duration of a contingency stated in a sales contract may range from several days to three or four weeks.
LANGUAGE STUDY
1. Word building: complete the following chart.
Verb |
Noun |
Adjective |
|
|
|
notify |
notification |
notifiable |
|
resistance |
|
burden |
|
|
|
certificate, certification |
|
|
|
excusable, excusatory, excuseless |
usurp |
|
|
– |
|
contingent |
|
cancellation, cancel |
– |
execute |
|
|
|
|
contractual |
|
value |
|
assert |
|
|
|
confiscation |
|
2. Match the words on the left with their synonyms on the right.
1) negligence |
a) assert, confirm, prove |
2) notify |
b) discussion, polemics, argument, dispute |
3) detrimental |
c) postpone, put off |
4) controversy |
d) tell |
5) disaster |
e) continuance |
6) execution |
f) present, hand, provide, give, refer |
7) eliminate |
g) responsibility |
8) submit |
h) performance, fulfilment |
9) testify |
i) neglect, thoughtlessness |
10) obligation |
j) remove, expel, take out; get rid of |
11) duration |
k) catastrophe, emergency, hazard |
12) suspend |
l) injurious, prejudicial |
13) culpable |
m) claim, pretension |
14) assertion |
n) reprehensive, guilty |
3.Replace the italicised words in the sentences below with the correct form of the words given in 2.
1)To insure goods against losses being the result of unforeseen harmful events is a widely spread practice in international trade.
2)An unpredictable contingency might be the reason for releasing the parties from their duties under the contract.
3)Shortage of energy, strikes and lockouts may delay the production and consequently the timely delivery of goods.
4)Ordinary or willful carelessness can’t be regarded as an excuse for exempting the parties from their liabilities.
5)If the sellers fail to inform the buyers of a force majeure circumstance in due time, they will be deprived of the right to refer to this calamity.
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6)What is to be included in a force majeure clause of a sales contract is the point that often causes much debate among counterparties.
7)If a contingency could have been predicted and forestalled, it is the defendant who is blameworthy of not fulfiling their obligations.
8)The sellers are to send to the buyers a certificate issued by the Chamber of Commerce confirming the fact that a force majeure took place.
9)This document verifies the fact of a contingency as well as its nature and endurance.
READING
TYPES OF INSURANCE AND MARINE LOSSES
Key concepts and terms
Match up the words on the left with the definitions on the right.
1) insurance |
a) a financial or other interest in the subject matter (life, property, etc.) |
|
covered by a contract of insurance, without which the contract cannot be |
|
enforced and which provides the person insured with the right to enforce it |
2) indemnity |
b) an employee or an agent of an insurance company who assesses |
|
risks and determines the premiums payable |
3) cover note |
c) a demand for a remedy or assertion of a right; an application by a |
|
policy-holder for payment of a loss under the terms of the policy |
4) insurable interest |
d) compensation for loss or damage; reimbursement |
5) average |
e) a formal document issued by an insurer setting out the terms of a |
|
contract of insurance |
6) underwriter |
f) a temporary confirmation that an insurance risk has been covered, |
|
issued pending the completion of a full insurance contract |
7) claim |
g) the act, or business of providing financial protection against |
|
specified contingencies, and involving payment of regular premiums in |
|
return for a policy guaranteeing such protection |
8) insurance policy |
h) an entity engaged in the business of insurance |
9) insured |
i) a loss incurred or damage suffered by a ship or its cargo at sea; the |
|
equitable apportionment of such a loss among the interested parties |
10) insurer |
j) the short term used to refer to the party to benefit under an insurance |
|
contract |
Text 8.2. Read the text and explain why so many different kinds of insurance exist.
Why to Insure
Classes of Insurance
Insurance is the use of contracts to reduce and redistribute risk. Ships may sink and other vehicles (including ships) may collide; consignments may be lost or damaged. While goods are being stored, there are the risks of fire and burglary. With the goods in transit, the number of hazards even arises: accidents, vibration, poor handling, change of temperature, pilferage, breakage, etc. The main idea of insurance is to obtain indemnity in case of damage or loss. In an insurance contract, the insurer accepts a fixed payment, or premium, from the insured, and in return undertakes to make payments if certain events occur.
In every insurance contract the insured exchanges one evil for another. Without insurance there is a small chance of a large loss; with insurance there is a certain small loss, that is the premium, and possibly some further loss if the damage done by the event insured against exceeds the sum insured. The insurer makes the reverse exchange, accepting a new risk for the sake of the premium. Insurers are willing to take on risk in this way for two reasons. One is that they may be risk-neutral, or at least less risk-averse than the people they are insuring. The other factor which induces insurers to take on risks is that if they take on a number of risks of the same general type which are largely independent,
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the proportional dispersion of their returns will be smaller than the average of the individual risks they take on.
There are two types of insurance: indemnity insurance, which provides an indemnity against loss and in which the measure of the loss is the measure of payment (e.g. a fire policy); and contingency insurance, which involves payment on a contingent event and in which the sum paid is not measured by the loss but stated in the policy (e.g. a life policy).
There are many kinds of insurance contracts but all of them fall within one or other of the four main classes below.
1)Accident insurance includes a wide variety of policies, dealing mainly with loss of property other than by fire and lightning and with property other than ships and their cargoes. One of the biggest sections is theft insurance, formerly called burglary insurance. It also includes a wide range of liability insurance.
2)Fire insurance includes a number of risks connected with fire, explosion, flooding, earthquake, etc.
These two kinds of insurance are considered to be general insurance as distinct from life insurance. General insurance contracts are normally for a risk of a specified monetary value and for a specified period of time.
3)Life insurance or assurance (the term ‘assurance’ has the same meaning as insurance but is generally used in relation to events that will definitely happen at some time or another, whereas insurance refers to events that may or may not happen) includes all insurances that relate to an inevitable event such as a person’s death, or the date a person reaches a certain age. Life assurance contracts are for a specified monetary amount and are necessarily indeterminate in time. However, life policies may also be taken out for a specified period of years, in which case they are known as term policies.
4)Marine insurance is the oldest of the four main classes of insurance, dealing with a variety of policies that give cover to owners of ships, their cargoes and of other marine property against damage or loss caused by marine perils, i.e. accidents that may happen at sea, in harbour or on inland waterways. Some marine policies cover liabilities to third parties (persons not party to the contract), and also cover loss of earnings from freight.
Marine Insurance
Back in the Middle Ages, ships were the most important form of transport, and their cargoes were often very valuable. Sometimes traders would even risk their whole capital with just one shipment. So somebody came up with the idea of forming a group to spread the risk – and marine insurance was born.
The ship and cargo owners (the insured) each pay a percentage of the value of their goods (the premium) into a fund administered by the insurance company (the insurer). An insurance premium is the name given to the sum of money paid by the firm insuring its goods, and is quoted as a percentage. Should any insured then suffer a loss, they can claim compensation from the insurer for the loss; this means they will receive money from the fund to the value of the loss they suffered.
Some of the risks against which it is possible to take out insurance include:
1)so called Acts of God such as perils of the sea, fire, floods, earthquakes, etc.;
2)war perils, pirates, seizures, restraints, jettisons and barratry;
3)loss of the goods through being washed overboard;
4)damage to the goods, e.g. by breaking, bending, etc.;
5)damage to the goods by vermin such as rats and mice;
6)loss of the ship on which the goods are being transported, e.g. by sinking or collision with another ship; and
7)loss of the goods through theft or non-delivery.
Standard insurance policies generally do not cover political risks as war and strikes. However, it may be possible to obtain insurance cover of these risks by paying an extra or higher premium.
Normally goods are insured for the CIF value of the consignment + 10 % of that figure. Using the CIF value means that, in addition to the price of the goods, the freight charges and insurance premium are also covered. 10 % means that in case of a total loss the insured party receives some compensation for expense of processing the claim and for any commercial loss.
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Text 8.3. Read the text and say what marine losses are.
Marine losses
In marine insurance losses fall into two main categories: Total Loss and Partial Loss. Both are again subdivided. Total Loss can either be Actual Total Loss (ATL), where vessels or cargos are totally and irretrievably lost, or Constructive Total Loss (CTL) in the case where the ship or the goods have been abandoned because the cost of salvage or recovery would have been out of proportion to the value.
In the case of a Partial Loss, a fine distinction is drawn between Particular Average and General Average. In marine insurance ‘average’ means loss or damage. If a particular cargo is lost or damaged because of an accident, e.g. sea-water or fire on board the ship, the damage is called particular average and the loss must be borne by the owner of this individual consignment. If owners estimate this risk as very small, they may think it unnecessary to insure against it and take out a policy “Free of Particular Average” (FPA) and thus obtain a slightly lower premium.
Under an insurance contract concluded on “With Particular Average” condition, the following losses are indemnified:
1)losses due to damage to or total loss of the whole or part of the cargo caused by fire, lightning, storm, whirlwind and other elemental disasters, stranding or collision of vessels, aircraft and other means of transport with each other or by contact with any fixed or floating objects, grounding, collapsing of bridges, explosion, damage to the vessel by ice, wetting by sea or river water and also owing to measures taken for salvage and extinction of fire;
2)losses in consequence of the vessel or aircraft being missing;
3)losses due to damage to or total loss of the whole or part of the cargo in consequence of accidents in loading, stowage and discharge of the cargo and in taking in fuel by the vessel;
4)losses, expenses and contributions allowed in general average;
5)any necessary and properly incurred expenses for the salvage of the cargo and also for minimising the loss and ascertaining its extent, if the loss is indemnified in accordance with insurance conditions.
General average is of an entirely different character. It applies to a loss intentionally incurred in the general interest of the shipowner and the owners of the various cargoes, i.e. general average occurs when the object insured is sacrificed in order to prevent a total loss. For example, a ship may have run aground and all efforts to refloat it have failed. In order to save the ship from breaking up, the master may decide to jettison part of the cargo to lighten the ship and prevent it from sinking. This loss is borne by all the parties concerned (both the shipowner and the cargo owners) in proportion. The same applies to additional expense incurred in the common interest, i. e. the cost of using a tug to tow a damaged vessel into the port: all parties have to contribute in proportion to their interests. A merchant can, and usually will, insure against this liability.
Under an insurance contract concluded on FPA condition, the following losses are indemnified irrespective of percentage:
1)losses due to damage to or total loss of the whole or part of the cargo arising from all perils except those specified separately;
2)losses, expenses and contributions allowed in general average;
3)any necessary and properly incurred expenses for the salvage of the cargo and also for minimising the loss and ascertaining its extent, if the loss is indemnified in accordance with insurance conditions.
R e m e m b e r !
Goods are normally insured for the full amount of their value, which is calculated as in following way: price of goods + cost of freight + insurance premium + percentage of the total sum to represent a reasonable profit for the seller. Usual procedure is to ensure goods against all risks. This type of marine insurance involves the WA clause (‘with average’, where the word ‘average’ derived from French avarie means ‘damage’), which denotes that insurers pay claim for partial losses. The FPA (as was mentioned above) means that partial losses are not covered.
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Text 8.4. Read the text and explain the basic principles of insurance.
Principles of Insurance
For insurance to function properly, the insurer and the insured have to make sure that certain basic requirements are fulfiled when the insurance policy is drawn up.
• Utmost good faith (Latin: uberrimae fidei)
When filling out a form applying to take out insurance, one party has a preliminary duty to disclose material facts relevant to the subject matter to the other party, i.e they are obliged to tell the truth about the value and condition of the goods to be insured and also to mention anything which might increase the risk of the goods being stolen or damaged. Nondisclosure makes the contract voidable. The insurer accepts the application in the ‘utmost good faith’ that all the details supplied by the insured are correct, and fixes the level of the premium accordingly. For their part, the insurers are obliged to deal fairly with the insured, for example, by making all the conditions of the insurance policy clear to the insured.
• Insurable interest
Insurable interest is a legal term referring to the value in the subject of insurance directly attributable to the insured; such a value must normally exist both at the time of contracting the insurance and at the time of any claim, if the contract is to be valid. It is essential that the insured has an insurable interest in the goods to be insured: this means they have to suffer a financial loss if the goods are stolen or damaged. Generally this means that you can take out insurance for your own property, but not for someone else’s.
• Indemnity
The idea of indemnity is that if the insured suffers a loss, they have to be paid sufficient compensation to bring them back to the same financial condition as they were in before the loss – not more and not less (this does not apply to life or personal accident insurance). This prevents people from over-insuring their goods in the hope of making a profit.
• Subrogation
Subrogation is the substitution of one person for another, esp. the placing of a surety who has paid the debt in the place of the creditor, entitling this guarantor to payment from the original debtor. Thus, an insurer who indemnifies the insured against the loss of goods may be subrogated to the insured person’s rights against a third party whose negligence caused the loss, i.e. once the insurer has compensated the insured for the loss, they have the right to recover the amount in question from the party responsible for the loss (for example, if the insurer can prove that the ship was not seaworthy, they can take legal steps against the ship owner).
Text 8.5. Read the text and explain the importance of obtaining insurance policies.
Insurance Policies
Under marine insurance, the main document is an insurance policy. It is issued by the insurer and contains the terms and conditions of the insurance contract. Since such a document is as a rule issued for a long period of time (usually a year) and for big quantities of cargoes, which can be delivered by separate consignments, another document may be used, namely an insurance certificate, for each consignment.
Standard insurance policies generally do not cover political risks such as war and strikes. However, it may be possible to obtain insurance cover of these risks by paying an extra or higher premium. The insurance policy is a very important instrument because it forms part of the shipping documents which are sent to the consignee either direct or, more usually, through a bank.
Written evidence of the insurance contract is provided in the insurance policy. If insurance is needed at short notice before the issue of a policy, the insurer can provide the insured with a cover note, which is itself a temporary contract on insurance. It fulfils this function until the insurance policy is ready. The following types of cover are available:
• Some policies cover the ship itself, but not the goods being carried. The form of insurance in which the insurer undertakes to indemnify the insured against loss of the ship is called hull insurance and the policy is called a hull policy.
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• Some policies cover the goods carried on board the ship but not the ship proper. This is freight insurance and the policy is called a cargo/freight policy.
A marine insurance contract may be extended to losses on inland waters or to risks on land that may be incidental to a sea voyage.
An insurance policy for a particular journey is called the voyage policy. This type of policy covers the ship and/or cargo against risks arising in the course of only one voyage of any duration. This policy may specify a date limit within which the ship is expected to have arrived at the port of destination. It is used by people or companies who only have to ship goods occasionally.
The time policy is used most often. It covers all shipments made within a specified period of time. The premium is paid in advance and then adjusted at the end of the period of insurance, depending on the number and value of shipments made. The insured has the responsibility of filling out an insurance certificate for each shipment, so that an accurate record can be presented at the end of the period of insurance (not more than 12 months).
The combination of the voyage and time policies is called the mixed policy. The ship and/or cargo are covered for all voyages between two named ports for a certain period of time (for example, for all voyages from Liverpool to New York over a period of one year).
The next kind of policies, which is used by those who have frequent shipments, is the floating policy. With the floating policy, the insured and the insurer agree in advance on a certain lump sum at which the goods are to be insured. The insured can then make as many shipments as they want until this value has been reached, at which point the policy expires. In other words, the individual shipments are written off until the policy is exhausted and has to be renewed.
The open policy works on a different principle. It gives cover either for a fixed period, usually 12 months, after which it automatically expires, or for an indefinite period until 30 days’ notice has been given. With the open policy, the insured agrees to have all consignments insured by a particular insurer at an agreed rate and under one policy, each consignment being declared to the insurer at the time of dispatch. The difference between the open policy and the value (agreed value) policy is to be discerned. With the latter, the value of the goods is agreed at the start of the policy and will be the basis of payment by the insurers in the event of any loss, whether total or partial.
Concept Check
1.Complete the following sentence summarising the information from the texts above: Two main purposes of insurance are …
2.Explain the essence of insurance.
3.Using your own words, comment on the statement from the text: In every insurance contract the insured exchanges one evil for another.
4.What are reasons for insurers to take on risks?
5.Explain the difference between indemnity and contingency insurances.
6.Fill in the chart and describe it.
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7.Describe some of the risks which can be covered by marine insurance. Why do you think political risks are not usually covered by marine insurance?
8.Complete the chart about marine losses and comment on it.
Marine losses
… loss |
… loss |
9.What type of loss was this?
1)The ship disappeared while sailing through the Bermuda triangle.
2)The ship carrying cheap general cargo sank close to the coast of France.
3)Two boxes of goods were lost overboard as a result of bad weather.
4)In 1912, the supposedly unsinkable Titanic hit an iceberg and sank in the Atlantic.
10.What is the conventional way of insuring goods and calculating their value?
11.Fill in the table given below.
Losses under the insurance contract concluded on
“With Particular Average” condition |
FPA condition |
|
|
1) |
1) |
2) |
2) |
… |
… |
12.Using your own words, explain the principles of insurance. Why are these principles necessary?
13.What is wrong here?
1)Mr. Smith’s insurance company refused to pay him when his house was broken into, as they found out from police records that it had already been broken into twice before he took out insurance. Why?
2)Mary’s mother lent Mary some expensive jewellery. However, when Mary applied to have it covered by her household insurance policy, the insurance company refused. Why?
3)Mr. Adams wanted to insure the goods in his warehouse for $200,000, which was the price at which he could sell them. However, the insurance company told him that they could only insure the goods for $120,000. Why?
14.Match different kinds of policies with their definitions.
1) hull policy |
a) covers both the ship and goods during one journey |
2) freight policy |
b) covers all voyages between two named ports for a specified period |
|
of time |
3) voyage policy |
c) covers the loss of the ship |
4) time policy |
d) covers all consignments at an agreed rate and under one policy |
5) mixed policy |
e) covers the sum paid in freight and the cargo on board the vessel |
|
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6) floating policy |
f) covers the value of the cargo agreed at the very start of the policy |
7) open policy |
g) covers all shipments within a specified period of time |
8) value policy |
h) covers a certain lump sum for any number of shipments until this |
|
value is reached |
15.What type of insurance policy would you use in each situation? Justify your answer.
1)A customer in Sri Lanka placed a trial order.
2)A company in Canada received a standing order from a company in Boston.
3)A carpet importer in Italy often places orders with a company in Morocco. However, as sales fluctuate, the size and value of the orders tend to vary and are not always predictable.
4)An exporter in Japan was offered a one-year contract to supply goods to various branches of an American corporation.
5)A family emigrating from England to Australia sent most of their household goods by
ship.
16.Complete the sentences.
1)The essence of insurance is that the insurer …
2)Insurance is necessary for …
3)General insurance indemnifies for a risk …
4)Life assurance also indemnifies for a specified monetary value but …
5)The usual method of insuring cargo is for … which means that … .
6)In the case of a particular average it is the owner who … while under a general average … in proportion to their interests.
7)The full amount of the insurance value comprises … .
8)If the marine insurance includes the WA clause, it means that …, if the FPA clause is stipulated, then … .
9)According to the utmost good faith principle both parties … .
10)The difference between an insurance policy and a cover note lies in the fact that a policy is … while a cover note … .
LANGUAGE STUDY
1. Find in Texts 8.2–8.5 the English equivalents for the following.
Страховая премия (страховой взнос), полное доверие, страховой интерес, гарантия от убытков, переход прав страхователя к страховщику, временное страховое свидетельство, полис страхования судна, полис страхования груза, полис страхования на перевозку, полис на срок, генеральный полис, действительная полная гибель, конструктивная полная гибель, частная авария, общая авария.
2. Match the words on the left with their definitions on the right.
1) jettison |
a) compensation |
2) exceed |
b) found in or relating to the sea |
3) recovery |
c) the whole, esp. regarded as the complete sum of a number of parts |
4) accident |
d) be superior to (a person or thing), esp. in size or quality; excel |
5) marine |
e) the dishonest taking of property belonging to another person with |
|
the intention of depriving the owner permanently of its possession |
6) salvage |
f) throw overboard |
7) ascertain |
g) exposure to risk or harm; danger or jeopardy |
8) total |
h) an unforeseen event or one without an apparent cause |
9) partial |
i) forsake completely; desert; leave behind |
10) theft |
j) the act, process, or business of rescuing vessels or their cargoes from |
|
loss at sea |
11) peril |
k) determine or discover definitely |
12) abandon |
l) relating to only a part; not general or complete |
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3.Fill in the blanks with the correct form of the words given in 2.
1)… insurance includes various kinds of policies, the biggest one being a … policy.
2)Making a decision to … part of the consignment, the captain saves the vessel.
3)The oldest type of insurance is … one which history throws far back in the Middle Ages and which covers losses caused by … happening at sea or in harbour.
4)Under the insurance contract it is necessary to … the extent of losses and expenses incurred for … of goods and a ship.
5)If the damage done by any hazard … the sum insured, the insured suffers great losses.
6)Main categories of marine insurance are … Loss and … Loss, both being correspondingly subdivided into Actual … Loss and Constructive … Loss; as well as Particular … and General … .
7)Under the Constructive … Loss vessels and cargoes are … because of high cost of salvage and because the loss is not subject to … .
4.Read the passage about insurance and complete it with the correct words from the box. Some words are used more than once.
cover, policy-holder, claim (v), claims (n), broker, return, risks, proposal form, underwriters, compensation, policy, premiums, insured, insurer, commission, loss, consignments, insure, insurance
How Insurance Works
Export consignments can be stolen, damaged or even totally destroyed in transit, causing financial loss to the exporter. To protect themselves against such (1) …, exporters always insure their
(2) … . Without this insurance (3) … , a company could even be put out of business by the loss of a large consignment. With this insurance cover, the insurance company will pay (4) … for the (5) … and the exporting company will be able to stay in business.
To (6) … a cargo, exporting companies pay a small percentage of the value to the (7) … company. These (8) … will create a pool of money that can be used to pay the minority of companies who suffer loss and (9) … compensation. In this way, the risk is spread and people have a sense of security. The insurance company expects to receive more money in premiums than it pays out in (10)
…. Insurance companies have large amounts of money, the premium income, to invest, and the (11)
…on their investments increases the size of the pool of money from which they рay compensation to (12) … who make claims.
When insurance is taken out, a (13) … is completed, which gives details of what is insured, for how long and the nature of the risk. (14) …, who work for the insurance company, then assess the risk and calculate the premium – the price of insurance. The client then receives the (15) … , which is the contract between the (16) … and the (17) … , giving full details of cover and compensation .
Instead of going directly to an insurance company, it is possible to seek advice from an insurance (18) … about the many different policies available from insurance companies. The broker is paid (19) … by the insurance company whose policy is chosen.
5. Fill in the missing prepositions.
1)Goods are normally insured (1) … certain risks. They are usually insured (2) … the full amount (3) … their value. If they are found (4) … arrival (5) … the port (6) … destination to be damaged, a report (7) … the damage should be made.
2)Details (8) … the agreement (9) … the client and the insurance agency are to be found (10)
…the insurance policy.
3)The sellers shall be held responsible (11) … the buyers and have to compensate (12) … the losses arising due (13) … any damage or breakage of the equipment.
4)When the Lloyd's agents examine a damaged consignment, they will also look (14) … the bill (15) … lading signed (16) … the captain (17) … the ship. If the bill (18) … lading is clean, the captain has accepted the consignment as being (19) … good condition, and so the ship owners may be claimed (20) …the cost of the damaged goods.
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CONTRACTING
Read the Force Majeure and Insurance Clauses from the Contract of Sale and do the comprehension task below.
Force Majeure
1.The Parties are released from responsibility for partial or complete non-filfilment of their liabilities under the present Contract, if this non-filfilment was caused by circumstances of Force Majeure, namely: fire, flood, earthquake, as well as war, embargoes and any other cause beyond the control of either contractual party, provided these circumstances have directly effected the execution of the present Contract. In this case the time fulfilment of the Contract obligations is extended for the period equal to that during which such circumstances last.
2.The Party for which it becomes impossible to meet obligations under the Contract is to notify in written form the other Party of the beginning and cessation of the above circumstances immediately, but in any case not later than 10 days from the moment of their beginning. The notification of Force Majeure circumstances not made within 15 days deprives the corresponding party of the right to refer to such circumstances in future.
3.The Certificates issued by the respective Chambers of Commerce will be sufficient proof of the existence and duration of the above indicated circumstances.
4.If these circumstances last longer than six months, each Party will be entitled to cancel the whole Contract or any part of it and in this case neither Party shall have the right to demand any compensation of eventual losses from the other Party. The Sellers undertake in this case immediately to reimburse the Buyers for all the amounts paid by the latter under the present Contract.
Insurance
The Sellers shall insure the goods delivered under the present Contract (on CIF terms) against the usual marine risk with the Insurance Agency of the Russian Federation in accordance with the Rules of Transport Insurance for the invoice value of the goods. The goods may be insured against other risks only on the instruction of the Buyers and at their own expense.
Comprehension
1.What exact contingencies are listed in the present Contract?
2.What are the Parties obliged to do if any force majeure circumstances arise?
3.Which documents will be sufficient evidence of adverse circumstances and their duration?
4.What rights does any Party have in force majeure circumstances under the present contract?
5.What are Sellers obliged to do if any contingency arises?
6.What sort of risk is covered by insurance under this Contract?
7.Explain in your own words to a non-expert the
•essence of the Force Majeure Clause; and
•rights and obligations of the Parties in case of any contingency under the present Contract.
RENDERING
Render the text about insurance in English.
Страховые документы
Страховые документы в международной торговле отражают взаимоотношения между страховщиком и страхователем в процессе осуществления внешнеторговой деятельности. Роль страховщика заключается в возмещении убытков, понесенных страхователем от несчастного случая, против уплаты страховой премии. К страховым документам относятся страховой полис, страховой сертификат и ковернот.
Страховой полис – выдаваемый страховщиком документ, подтверждающий договор страхования и содержащий условия заключенного договора, в котором страховщик обязуется за конкретную плату возместить страхователю убытки, связанные с рисками и несчастными случаями, указанными в договоре. Виды страхового полиса:
• рейсовый страховой полис, содержащий данные о наименовании страхователя, условиях страхования, размере страховой суммы, размере страховой премии; по рейсовому
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