Lesson 16 Insurance

 

Lesson16 Specimen 1 Insurance Practice

Dear Mr. Handayani,

Re: Order No. HD-210

We acknowledge the receipt of your letter dated June 28, inquiring about the insurance on the above-mentioned order.

As to the goods sold on CIF basis, we would say, our company will insure against All Risks for Frozen Products for 110% of the invoice value. If you want to insure broader coverage, the extra premium involved will be for buyer’s account. When the goods are delivered to the consignee’s warehouse at the destination named in the policy, the insurance shall terminate. It should be noted that the cover is limited to 60 days upon discharge of the insured goods from sea-going vessel at the final port of discharge before the insured goods reach the consignee’s warehouse.

Should any damage to the goods occur, a claim may be filed to the insurance agent of PICC at your end, who will undertake to compensate you for the losses sustained.

The claim shall be submitted as promptly as possible. Claims against the ocean carriers usually become time-barred one year after discharge of the cargo from the sea-going vessel.

The PICC enjoys high prestige. The principal perils which the basic marine policy of the PICC insures against under its Ocean Marine Cargo Clauses are：FPA,WPA and All Risks. For further particulars please contact PICC or its agent at your end.

Yours faithfully,

Li Wen

 

Lesson16 Specimen 2 A Reply to an Insurance Request

Dear Mr. Evans,

We have received your mail dated July 10 requesting us to have the goods insured for 150% of the invoice value.

Since the business is concluded on CIF basis, we usually insure the shipment with the PICC for the invoice value plus 10% and cover All Risks.

If you want to have the goods insured for 150% of the invoice value, we can do it for you but the premium for the difference between 150% and 110% of the invoice value should be borne by your company.

Waiting for your early reply.