Insurance of goods

The export trade is subject to many risks. Ships may sink or collide; consignments may be lost or damaged. All sensible businessmen now insure goods for the full value. The idea of insurance is to obtain indemnity in case of damage or loss. Insurance is against risk. While the goods are in warehouse, the insurance covers the risk of fire, burglary, etc. As soon as the goods are in transit they are insured against pilferage, damage by water, breakage or leakage. Other risks may also be covered. The insured is better protected if his goods are insured against all risks. The goods may be also covered against general and particular average. In the insurance business the word average means loss. Particular average refers to risks affecting only one shipper’s consignment. General average refers to a loss incurred by one consignor but shared by all the other consignors who use the same vessel on the same voyage. Goods are insured with some insurance company.

Words and Word Combinations:

consignment груз, партия товара

insurance indemnity страховое возмещение

warehouse склад (товарный)

burglary кража со взломом

pilferage мелкая кража, хищение из отдельных мест груза

leakage утечка

general average (страх.) общая авария

particular average (страх.) частная авария

to incur losses терпеть убытки

consignor грузоотправитель

to insure goods with smb застраховать товар у…, в…

Questions:

1. Name some risks to which the export trade is subject.

2. What does the word “average” mean in the insurance business?

3. What is the name of the state insurance company in the Republic of Belarus?

4. Has it any competitors?

5. Why is it very important to encourage competition in the insurance business?

6. Describe the conditions of insurance for your goods.

7. What is particular average?

8. What is general average?