WORLDWIDE INSURANCE Ltd.

Worldwide House, Vorley Road, London N19 5HD

Telephone: 071 263 6216 Fax: 071 263 6925 Telex: 211121

Chairman: A.L. Galvin АСА FIS Registered in England No. 6 915614

Managing Director: P.R. Erwin CIS VAT No. 56 341 27

Directors: L. Swanne, T.R. Crowe MC, H.B. Sidey MA

Your Ref: Our Ref: Ml-C 167932 Date: 28 October 20—

Mr T. Shane

Excelsior Engineering PLC

Valley Estate

Birkenhead

MerseysideL41 7ED

Dear Mr Shane,

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I have now received our assessor's report with reference to your claim CF 37568 in which you asked for compensation for damage to two turbine engines which were shipped ex-Liverpool on the SS Freemont on October 11, for delivery to your customer, D. V. Industries, Hamburg,

The report states that the B/L, No. 553719, was claused by the captain of the vessel, with a comment on cracks in the casing of the machinery.

Our assessor believes that these cracks were responsible for the casing weakening during the voyage and splitting which eventually caused damage to the turbines themselves,

I am sorry that we cannot help you further, but the company cannot accept liability for goods unless they are shipped clean. See Clause 26B of the Policy.

Yours sincerely,

D. Adair

Manager

12.6

Points to remember

1. Insurance is designed to cover a business or individual against risks such as loss, damage, or injury. Numerous types of policies are available to offer cover against eventualities, but the client has to decide which hazards apply to him.

2. Assurance is concerned with offering benefit payment either to dependants, in the case of death or incapacity, or in the case of endowment schemes, a lump sum or pension after a number of years' contributions.

3. Indemnification is the cover which allows compensation in the event of loss or damage, and is calculated on the market value or depreciation value of goods, not their original value. To be insured, a client completes a Proposal Form; the premium is then assessed and quoted, in the UK, in pence percent. On acceptance, the client is issued with a cover note which gives him cover until the policy is ready. As insurance is based on the principle of good faith, and supported by laws against fraud, insurance companies accept that the items being insured belong to the client, are not being insured more than once, are of the value stated, and that the client will follow the conditions of the policy.

4. Marine insurance offers shippers a variety of policies to cover shipments. However, most exporters ship under an all-risk, valued policy which covers them against most eventualities and allows them compensation for loss or damage, plus ten per cent.

5. Open cover and floating policies are used when the exporter makes regular shipments. These give him a total amount of cover which decreases as each shipment's value is declared, but can be renewed.

12.7

Words to remember

an insurance company

a broker

a proposal form

a quotation

a policy

cover

all risk

underwriter

a syndicate

a cover note

indemnification

original position

subrogation

to cover against

to take effect from

to bond someone

to renew a policy

a claimant

to make/reject a claim

compensation

to inspect damage

negligent

to overvalue

an independent assessor

an assessment

valuation

arbitration

life assurance

benefit payment

endowment

fire insurance

'special perils' policy

consequential loss insurance

accident insurance

insurance liability

property insurance

personal accident insurance

insurance of interest

fidelity bonds

marine insurance

all risk policy

valued policy

time policy

voyage policy

mixed policy

floating policy

open cover policy

in arrears

a clause

free from particular average

with particular average

declaration form

an insurance certificate

to ship clean

a clean bill of lading

The American Insurance Association

Lloyd's of London

Lloyd's List

Lloyd's Shipping Index

Lloyd's Loading List

Lloyd's Register of Shipping

Date: 2016-01-03; view: 1426