. We have covered insurance on ,000 cases of beer for 0% of the invoice value against all risks.
2. If you desire usinsure against a special risk, an extra premium will havebe charged.
3. This riskcoverable at a premium of 0.25%.
4. The insurance company insures this risk with 5% franchise.
5. After loading the goods on board the ship, you must gothe insurance companyhave them insured.
6. We can serve you with a broad range of coverage against all kinds of risks for sea transport, such as Free of Particular Average (F. P.A.), With Particular Average (W.P.A.), All Risks and Extraneous Risks.
7. W.P.A. plus Risk of Breakage suit your consignment.
8. The premiumcalculated accordingthe premium rate or rates for risksbe covered.
9. They will undertakecompensate you for the losses accordingthe risks insured.
0. We are ablecover all kinds of risks for transportation by sea, land and air.
. We wo have such a risk included, as itnot stipulated in the Ocean Marine Cargo Clauses.
2. Do you cover risk other than W.P.A. and War Risk?
3. As a rule, the extra premium involved will be for buyer’s account.
4. Please note that our insurance coveragefor 0% of the invoice value only.
5. How longthe period from the commencementtermination of the insurance?
6. We adopt the warehouse-to-warehouse clause thatcommonly used in international insurance.
7. Accordinginternational practice, we do not insure against such risks unless the buyers call for them.
8. Breakagea special risk, for which an extra premium will havebe charged.
9. Because they are delicate goods and not likelybe damaged on the voyage.
A: Good afternoon, Mr. Brown. My appointment was at 4 o’clock, was it?
B: Yes, Mrs. Wang. We have been expecting you. Mrs. Wang, thisMr. Jordan of the People’s Insurance Company of China. He has comeexplain the unfortunate affair about the insurance.
A: Thank you for coming. Mr. Brown, as you may recall, the
February consignment arrived at Manila seriously damaged. The loss through breakage was over 30% of the consignment. We’ve presented a claimthe underwriters through your firm, but the insurance company refusedadmit liability, as there was no insurance on breakage. We naturally were not satisfied with such a reply.
B:should likehear what Mr. Jordan hassay about it. You know of course that we, the sellers, are merely acting as mediators in this matter. The Insurance Companyresponsible for the claim, as far as itwithin the scope of coverage.
J: That’s just the point. The loss in question was beyond the
coverage granted by us. Accordingyour instructions, we made out an insurance certificate covering W.P.A. and the risk of break- age was mentioned in it. We rang up the Ceramics Section of Light Industrial Products Import & Export Corporation, but were told that their customer had not asked for coverage in case of breakage.
B: In the letter of credit only coverage for all marine risks?was requested.should likepoint out that our prices were calcu- lated without insurance for any special risk. So we applied for the usual W.P.A. coverage and let our customers deal with the matter of breakage. Since the validity of the letter of credit was goingexpire in two days, there was no timewrite for more detailed instructions. If the L/C had been valid for a longer period, we should have had timemake the matter thoroughly clear.
A: Mr. Brown, our import license only ran upthe middle of February, consequently we were not ableextend the validity of the letter of credit. But we presume that the wording of our L/C implies covering the risk of breakage. Besides, whentake a W.P. A. insurance, that is, with particular average,should think the risk of breakagea par ticular average, is it?
J: Not every breakagea particular average. Ita particular aver- age when the breakage results from natural ca lam i ties or mar i time accidents, such as stranding and sinking of the car ry ing vessel, orattributablefire, explosion or collision. If none of these conditions occur, break ageoften considered as an or di nary loss and rep re sents what we call ?inherent vice or nature of the subject matter insured? whichoutside the scope of the coverage.
A: But the risk of breakagecovered by marine insurance, is it?
J: Certainly, but ita usual practicemake specific mention in the insurance policy or certificate that the risk of breakageincluded. The inclusion of this special risk will be subjectan additional premium that will normally be higher than the basic insurance for the ordinary marine risks. The rate for such risk will vary accord- ingthe kind of commodity, or, as in ceramics, accordingthe fragility of the goods.think you must know all about that.
A: Well,have heard something about it butca say that itvery clearme.must admit I’m a layman as far as insuranceconcerned.
J: Then let me explain this insurance.
B: Mrs. Wang, would you care for a cup of tea? Or some coffee?
A: Thank you. A cup of tea would be nice. And now, let me hear more about the problem of insurance.
W: Dounderstand that All Marine Risks means less than All Risks?
J: The English understand by marine risks?only risks incidenttransport by sea, such as collision, stranding, fire, pen e tra tion of sea water into the holds of the ships, etc. In other words, under ?all marine risks? recoverable loss will only be con finedthose arising from perils of the sea and maritime accidents only. The all risks?coverage will admit all losses occurring at any time throughout the whole currency of the coverage, irrespective of whether they are caused by accidents at sea or on land. In this sense, all marine risks provides a more limited cover than all risks?
W:see. Another thingdo understand at this momentthe advantage of W.P.A. coverage.thought that the W.P.A. insurance should cover all principal risks while, accordingwhat you say, it means very little. It seemsbe a phrase without much substance. Then whatthe difference between W.P.A. and F.P.A.?
J: Thisa question thatvery often overlooked, Mrs. Wang. Ita very common but mistaken idea that a merchant has done everything thatrequiredprotect him against loss es when he has taken out W.P.A. insurance. There is, perhaps, no mistake more det ri men talhis interests.
W: That interests me very much.must confess thatwas under the impression that W.P.A. insurance was quite sufficient and that losses duebreakage were covered.know that F.P.A. insur- ance does not cover losses on consumer goods, butdid think that the W.P.A. in sur ance covered more risks than the F.P.A.
J: Actually itlike this. Theresome difference between W.P.A. and F.P.A. The F.P.A. clause does not cover par tial loss of the nature of particular average, whereas the W.P.A. claus es cover such losses when they exceed a prearranged percentage. Thisthe only dif fer ence between W.P.A. and F.P.A. Otherwise, the protection under the F.P.A. clause will be al most identical with that of fered by the W.P.A. clause, because in the event of mari- time ac ci dents en coun tered in transit, such as stranding, fire, explosion or collision, both clauses will cov er particular average losses in full.
W:do meanannoy you, Mr. Jordan, butdo quite grasp this. Could you say it in simpler terms?
J: I’ll try. Neither the W.P.A. nor the F.P.A. mentions the risks covered or the risks excluded. The extent of in sur ancestipulated in the basic policy form and in the various risks clauses. Look at the in sur ance certificates and you will find that the risks of theft and pilferage, freshwater, oil, grease, hooks, breakage, leakage, contamination, deterioration, etc. are specifically mentioned and must be specifically applied for. These are special risks. F.P.A. stands for free of Particular Average?while W. P. A. or W.A. stands for With Particular Average?
W: Mr. Jordan,must say that you have corrected my ideas about the insurance.see now that thisfar more complicated thanhad imagined.
B: Nowknow why you often point outus the wording of some letter of credit which you do feel happy about. But what are wedo about it? We must keepthe stipulations of the contract and the letter of credit.
-- 乔丹先生，我并不想让你生气，但是我还是不太懂。你能否说得 简单一点？
-- 我试试看。无论“水渍险”还是“平安险”都不注明包括哪些险别 或者不包括哪些险别。 保险范围是写在基本保险单内和各种险别条 款里。你看保险凭证就会发现偷窃险、淡水险、油渍险、油污险、 钩损险、破碎险、渗漏险、沾污险、变质险等都特加注明，并且必 须特别申保。这些就是特别险。F.P.A.代表Free from Particular
Average（平安险），而W.P.A.或W.A.代表 With Particular Average (水渍险)。
W: The blame does not only rest with the letter of credit. For an item like ceramics,think the Light Industrial Products Corporation should have understood from our letter of cred it that we want edcover all the risks, including the risk of breakage.must say the error was on both sides andthink the loss oughtbe shar- ed by both parties, let us say half and half.
B: Our price calculation could hardly admit that. Besides, we act ed upon your instructions, so itnot our fault. But in view of our good relationship, we’ll supply you with a favorable offercom- pensate some of your losses.
J: (rising)sincerely hope that you will settle the matteryour mutual satisfaction.
W: It goes without saying that both parties must abide by the con- tract terms that we have agreed upon and signed. This blunder, whichduemy ignorance, has cost me a pret ty penny.
B: We also have learned a lesson from this.
W: Well,compensate a part of the loss, as you suggested, mayask youmake us a firm offer for 50,000 glazed wall tiles C.I.F. Manila including the risk of breakage, November shipment?
B: We’ll make you an offer tomorrow. Come and see us at 9 a.m.