loss at Insurance Online

So, and there are the descriptions of these INCOTERMS (these descriptions provide the most important information about each term, they are not fun definitions):

Group E (Departure)

EXW    - Ex Works - means that the seller’s only responsibility is to make the goods available at his or her premises. The buyer bears the full cost and risk involved in transporting the goods to their destination.
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Group F (Main carriage paid by the buyer)

1) FCA - Free Carrier (named place) - mean that the seller fulfils his or her obligation when the goods (cleared for export) are handed over to the carrier named by the purchaser. In the case of rail or road transport, delivery is completed when the goods have been loaded. For sea transport, delivery is complete when the seller has taken the goods to the transport terminal.

2) FAS - Free Alongside Ship (named port of shipment) - means that the seller’s obligations are fulfilled when the goods have been placed alongside the ship on the quay. The buyer is liable for all costs and risks of damage from that moment. Unlike Free 0n Board this term requires the buyer to clear the goods for export. The buyer is responsible for obtaining any export or import license.

3) FOB - Free On Board (named port of shipment). The goods are loaded on board by the seller at a port named in the contract. The risk of loss or damage passes to the buyer when the goods pass the ship’s rail. The buyer is responsible for the transport costs from this port to the destination. However, it is the seller who has to obtain any export license or documentation necessary for the goods to leave the country. In the case of roll-on/roll-off or container traffic, when the ship’s rail is irrelevant, it is better to use the FCA term.
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Group C (Main carriage paid by the seller)

1) CFR - Cost and Freight - this term can only be used for sea and inland waterway transport. The seller must pay for the transport used to bring the goods to the named port but is not liable for risks from the moment the goods pass the ship’s rail in the port of shipment. In the case of roll-on/roll-off or container traffic, when the ship’s rail is irrelevant, it’s better to use the CPT term.

2) CIF - Cost, Insurance and Freight - is the same as CFR except that the seller has to arrange and pay for marine insurance for any risks during transit to the named port of destination.
In the case of roll-on/roll-off or container traffic, when the ship’s rail is irrelevant, it is better to use the CIP terms.

3) CPT - Carriage Paid To - (named place of destination) means that the seller pays for transport to the destination. The risks and costs are then transferred to the buyer when the goods have been given to the carrier. This term is suitable for any kind of transport including multimodal transport.

4) CIP - Carriage and Insurance Paid To (named place of destination) - is the same as CPT but the seller also pays for insurance during carriage.
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Group D (Arrival)

1) DAF - Delivered at Frontier    - means that the seller’s obligations are fulfilled when the goods have arrived at the frontier. It is recommended that contracts should specify which frontier, e.g. “Delivered at Franco-Italian frontier (Modane)”. This term is most often used for rail or road transport but can apply to any mode.

2) DES - Delivered Ex Ship (named port of destination) - can only be used for sea or inland waterway transport. The seller makes the goods (uncleared for importation) available to the buyer on board ship and bears all the costs and risks involved in bringing the goods to the port of destination.

3) DEQ - Delivered Ex Quay - is the same as DES but the seller is also responsible for unloading the cleared goods onto the quay or wharf. The contract should make it clear whether or not the seller pays duty, VAT, etc.

4) DDU - Delivered Duty Unpaid - means that the seller’s obligations cease when the goods are made available to the buyer at a named place in the country of destination. The seller pays for customs formalities but not for customs duty. The term can be used for any mode of transport.

5) The term DDP - Delivered Duty Paid - represents the seller’s maximum obligation. All expenses are incurred by the seller until they arrive at destination. The term may be used for any mode of transport but is unsuitable if the seller cannot obtain an import license.

<:3  )~~~~~~
Yours sincerely,
AlexSandra

INCOTERMS are set of international rules published by the International Chamber of Commerce, Paris, for the interpretation of the most commonly used terms in foreign trade.
The aim is to avoid disagreements resulting from differences in trading practices in various countries by describing clearly the duties of the seller and the buyer. INCOTERMS also regulate responsibility in different insured accidents - that is the most important thing for us!

The terms are grouped in four separate categories:

— E term — the seller makes the goods available to the buyer at the seller’s premises and that is all.

— F terms — the seller has to deliver the goods to a carrier appointed by the buyer.

— C terms — the seller pays for carriage, but does not accept liability for loss or damage after shipment and dispatch.

— D terms — the seller bears all costs and risks in shipping goods to the country of destination.

And now I would like to tell you about these groups in more details.

Group E (Departure)

EXW    - Ex Works
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Group F (Main carriage paid by the buyer)

FCA - Free Carrier
FAS - Free Alongside Ship
FOB - Free On Board
FOR - Free On Rail
FOT - Free On Truck
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Group C (Main carriage paid by the seller)

CFR - Cost and Freight
CIF - Cost, Insurance and Freight
CPT - Carriage Paid To
CIP - Carriage and Insurance Paid To
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Group D (Arrival)   

DAF - Delivered at Frontier
DES - Delivered Ex Ship
DEQ - Delivered Ex Quay
DDU - Delivered Duty Unpaid
DDP - Delivered Duty Paid
DCP - Delivered Carriage Paid

<:3  )~~~~~~
Yours sincerely,
AlexSandra

Critical Illness Insurance (CI) is a type of insurance that provides you protection in case of critical, serious illness. The list of them you can see below:

- Alzheimer’s Disease
- Aortic Surgery
- Benign Brain Tumor
- Blindness
- Cancer
- Coma
- Deafness
- Heart Attack
- Heart Bypass Surgery
- Heart Valve Replacement
- Kidney Failure
- Loss of Independent Existence
- Loss of Limbs
- Loss of Speech
- Major Organ Transplant & Magor Organ Failure
- Motor Neuron Disease (ALS)
- Multiple Sclerosis
- Occupational HIV
- Paralysis
- Parkinson’s Disease
- Severe Burns
- Stroke

Critical Illness Insurance was introduced in 1992 and, thus, I can say that this type of insurance is relatively new. CI was originally developed in South Africa by Dr. Marius Bernard. He was brother of a well-known heart surgeon Christian Bernard. Later CI gained popularity in the Great Britain, continental Europe, and, since 1996, became available in North America. I should say that this type of insurance is very popular, because it protects directly the insured person.

The list of critical illness is constantly changing:
- In the UK, where CI has been popular for a long time, as many as 33 illnesses are covered by the policy.
- In Canada, the list of eligible illnesses presently includes 22 items.

So, this list is constantly expanded with new illnesses being included in the existing policies with no extra charges or conditions.

I like the words of Dr. Bernard about this type of insurance: “you need insurance not only because you are going to die but also because you are going to live.”

<:3 )~~~~~~
Yours sincerely,
AlexSandra

—
According to www.totrov.com

I’m sure that you want to work. But, unfortunately, there are situations when people can’t find a proper vacation or any job at all. In this case we can speak about unemployment and insurance against it.

Unemployment is the state of a person who is out of work and actively looking for a job. The term does not refer to people who are not seeking work because of age, illness, or a mental or physical disability. Nor does it refer to people who are attending school or keeping house. Such people are classified as out of labor force.

Unemployment may involve serious problems for both the individual and society as a whole. For the individual, it means loss of income and, in cases of prolonged unemployment, may result in a loss of self-respect. For society, it results in lost production and, in some cases, criminal or other antisocial behavior.

The unemployment rate varies greatly among different groups. It tends to be several times as high for teenagers as for older people. Unskilled people experience about three times as much unemployment as do white-collar workers. The unemployment rate among blacks is typically at least twice that among whites.

Some economists classify unemployment into three categories. These categories are normal, structural and deficient demand.

NORMAL OR FRICTIONAL UNEMPLOYMENT exists in efficiently operating labor markets, even when jobs are plentiful. Such unemployment includes workers who have quit their jobs or have been fired, and are not immediately aware of available jobs. Another kind of normal unemployment, called seasonal unemployment, occurs in industries that lay off workers during certain seasons each year. These industries include agriculture, construction and shipping.

STRUCTURAL UNEMPLOYMENT exists when individuals seeking work have the wrong skills for the available jobs. Structural unemployment also includes people in the wrong location to fill available jobs or technological unemployment, which results from the development of new products, machinery or manufacturing methods. Such developments produce rapid changes in the demand for various skills. Also such unemployment allows you to use your insurance policy to get money.

DEFICIENT DEMAND UNEMPLOYMENT OR CYCLICAL UNEMPLOYMENT results from a general lack of demand for workers when the nation’s total spending is too little. As goods and services remain unsold, many industries reduce production and lay off employees. Deficient demand unemployment is called cyclical unemployment if it occurs in periods of decreased business activity. But it also can occur in times of increasing activity if the number of workers grows faster than the number of jobs.

To combat normal unemployment, the government must establish public employment agencies that inform unemployed workers of suitable job openings. To attack structural unemployment training of workers in skills required for available jobs must take place. The fight against deficient unemployment presents especially serious problems. The government may have to choose between the evils of unemployment and those of inflation.

Many economists believe that unemployment rates as low as 3 to 4 per cent should no longer be expected.

Unemployment insurance is means of protecting workers who are out of work and looking for employment. These unemployed workers receive cash payments, usually each week for a limited period.

If someone is told to leave his job, especially if the employer says he has done something wrong, he is dismissed (fired or sacked or given a sack). If someone feels that they have lost job unfairly they may take their case to a tribunal and sue or make a claim against the formal employer for unfair dismissal.

If an organization gets rid of employees because they are no longer needed it lays them off. Companies doing this sometimes talk about downsizing, rightsizing or letting employees go. They may say that they are overstaffed. When employees have no choice, the redundancies are compulsory, but when employees can choose to leave, redundancies are voluntary. When a lot of redundancies are involved, journalists talk about jobs being cut or massive layoffs.

People who are laid off may receive compensation in the form of redundancy payment. Unemployment benefit is also called the dole. People receiving it are on the dole. If you lose your job you join the dole queue.

To protect their rights employees may turn to industrial action. If you stop working normally in order to demand better pay, benefits or working conditions you take industrial action. In a strike workers stop working for a time. Workers are organized in unions. A union may call a strike. When a strike causes a lot of disruption, it paralyses the things it affects, such as services, factories, stopping normal activity and bringing things to a standstill. If government and organizations say they will not give in to striker’s demands, the strikers may respond by intensifying their industrial action. When a union calls off the strike, workers return to work.

Part of the current debate over national health insurance is rooted in two conflicting visions of how the cost of health care should be shared. We can designate one as the casualty insurance model and the other as the social insurance model.
Casualty insurance, which usually refers to automobile collision, residential fire, and similar risks, is premised on the idea that premiums should (to the extent feasible) be set according to expected loss. Other things being equal, policyholders with better driving records or with smoke detectors in their homes pay lower premiums; poorer risks pay higher premiums.
Social insurance, which is the basis for national health insurance, provides for extensive cross-subsidization among different risk groups; it ignores expected loss in allocating costs.
Advocates of the casualty approach argue that, as applied to health insurance, it is more efficient and more equitable than the social insurance model. They assert that use of care depends, to some extent, on personal behavior and choice. If premiums vary with expected use, individuals have an incentive to choose healthier behavior and to make more cost-conscious decisions about their use of care for any given health condition. A clear example is charging cigarette smokers higher premiums than those charged to nonsmokers. This may decrease the number of smokers, and even if it does not, advocates of the casualty model argue, it is fair for smokers to bear the extra cost of their unhealthy habit.
Even when there is no possibility of altering behavior, and even if use of care is unrelated to insurance coverage, the casualty model still offers an efficiency advantage in any system of voluntary health insurance. The alternative - a uniform premium for all individuals, including those with major health problems -will discourage purchase of insurance by those without such problems because the premium would be unreasonably high.
Advocates of the social insurance model rely heavily on arguments that appeal to one’s sense of justice or collective responsibility. In earlier times, these feelings of mutual responsibility were often evident within families and within religious communities. In modern times, many countries have extended the concept to encompass the entire nation. The philosophical foundations for such arguments can be discerned in John Rawls’s discussion of making choices behind a veil of ignorance.
For example, suppose that before you were born you did not know if you were going to be rich or poor, sick or healthy; you might (assuming some risk aversion) prefer to be born into a society that would provide health care on the same basis for, say, persons born with a genetic disease as for those born without such a problem. Advocates of the social insurance model also point to efficiency arguments. Because everyone must participate, there can be savings in sales and administrative costs that offset other efficiencies achieved through the casualty approach.
Whether one model or the other is more conducive to an efficient health care system is primarily an empirical question (interwoven with value judgments) that cannot be answered a priori. Which approach is more just is primarily a value question (individual versus collective responsibility), but empirical information concerning the reasons for variation in use of care is relevant.
In my experience, the same audiences that overwhelmingly approve charging smokers a higher premium because they use more care strongly oppose a premium surcharge for individuals whose high use is attributable to genetic factors. If cigarette smoking should turn out to have a significant genetic component, opinions concerning the smoker surcharge would presumably change. One consequence of the genetics revolution may be to shift public sentiment toward the social insurance model.

according to the article «National Health insurance» by Victor R. Fuchs (the journal «THE SENIOR ECONOMIST») Read the rest of this entry »

Caution is the parent of safety

an English proverb

Companies and individuals protect themselves against loss, damage, or injury by taking out insurance policies, which are contracts against possible future risks. The usual process of insuring a business or oneself is as follows:

A proposal form is completed by the firm or a person who wants insurance cover. This tells the insurance company what is to be insured, how much the policy is worth, how long it is to run, and under what conditions insurance is to be effected, as the policy may not automatically cover the insured against all risks.

Underwriters, who will pay compensation in the case of a claim, then work out the premium, i.e. the price of insur­ance. If the insurers are satisfied with the information given on the proposal form, they will issue a cover note. This is not the policy itself, but an agreement that the goods are covered until the policy is ready. Once the policy is sent it will tell the client that he is indemnified against loss, damage, or injury under the conditions of the policy.

Indemnification means that the insurance company will compensate the client to restore him to his original position before the loss or damage. Therefore, if you insured your car for $4,000 and three months later it was damaged, you would not receive $4,000 for the car, but its market price, which might have depreciated by 20% to $3,200. The insurance company will also have the right of subrogation, which means they can now claim the wrecked vehicle and sell it for any price they can get.

Companies and individuals make claims for loss, damage, or accident, by filling in a claims form, which tells the insurance company what has happened. If the insurers accept the claim, often after an investigation, they will then pay compensation.

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 of 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 per cent. 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.

The insurance industry has a large range of jobs that service various parts of the business. In addition to underwriters, who decide whether or not a risk should be insured, and agents, who sell the coverage, the industry employs many kinds of engineers, who inspect property and offer advice on making property safer. When a loss occurs, claim adjusters investigate its cause as, for example, in a fire and decide how much the insurance company owes its policyholder.

The industry has developed specialists called actuaries, who, through mathematical and statistical analysis, help underwriters determine the rates applied to life insurance premiums. The industry also employs a wide range of physicians, lawyers, computer experts, mathematicians, and others to support all the major players in the game of risk.

In the latter part of the 20th century, general industry has developed its own insurance specialists who specialize in purchasing insurance for their corporations. These risk managers must be acquainted with all forms of insurance and are generally in charge of deciding what insurance a corporation should buy and how much it should pay.

Insurance comes in many varieties. Categories include property, liability, homeowners’, automobile, medical, life, workers’ compensation, and marine.

Property Insurance

Property insurance is the modern form of the fire insurance that was sold by early insurance companies. The name has changed because the coverage has changed. No longer are just the losses resulting from fire protected by property insurance. Such losses as those from windstorm, theft, vandalism, and water damage are also covered.

Liability Insurance

Liability insurance is the most important kind of business insurance. A liability is a duty one person owes another, or is liable for, for some special reason. Liability insurance pays an individual or a business for liabilities that result from unforeseen situations.

Homeowners’ Insurance

Homeowners’ insurance is a combination offering both property and liability coverage. Usually it includes protection for a person’s home, any other buildings on the property, and for the buildings’ contents and personal belongings except automobiles and pets. The policy can be written to include the property of guests. If disaster strikes, homeowners’ insurance usually pays a family’s living expenses until they get settled at home once again.

Automobile Insurance

Automobile insurance is the most complicated kind of insurance purchased by individuals. It combines several kinds of property and liability coverage. The standard automobile policy includes collision insurance, covering property damage to a car when it is struck by another vehicle, and comprehensive insurance, covering general property damage that occurs when an automobile is damaged by something other than another vehicle.

Medical Insurance

Medical insurance pays the costs of hospitalization and physicians’ fees for insured individuals who are injured or become ill.

Life Insurance

Life insurance is designed to insure lives, though it frequently includes coverage for major disabilities such as the loss of limbs or organs. There are basically three kinds of life insurance that may be purchased by individuals for themselves or others or by employers for their employees.

Workers’ Compensation

Workers’ compensation is a special state-controlled insurance purchased by employers for the benefit of their employees. Like general liability and medical payment liability insurance, it pays for medical treatment required by employees of a company according to a state-regulated schedule of benefits. The object is to prevent employees from the need to sue their employers if they are injured and to compensate workers for losses from accidents on the job.

Marine Insurance

The oldest form of insurance that scholars have been able to document, marine insurance now includes much more than the shared risk of ships’ cargo. It might best be called transportation insurance because variations of the coverage include protection for ships, trucks, railroads, and aircraft. Underwriters generally divide it into two types: ocean marine, which deals with every kind of water conveyance, and inland marine for truck and rail cargo.

The art of advertising is to persuade people to buy your product or service. This requires a basic understanding of psychology, the needs of human beings and how those needs can be satisfied.

An American psychologist, Abraham Maslow, has suggested, those needs can be compartmentalized and arranged in the form of a hierarchy.

At the lowest level people need food, shelter, warmth and sex.

When these needs are eagerly satisfied, people begin to think about the safety of themselves and their personal possessions. Squirrels, when they have had their fill of nuts, begin to bury nuts in their winter larders, human beings have the same tendency, much to the relief of the insurance companies. Insurance appeals to those who would feel the loss of personal possessions, through burglary, flood and fire, and those who seek pensions and financial security generally.

Even when a human being does not feel under threat at the safety level, a new need emerges according to Maslow. There is now a need to be approved by other people, a need for love and respect.

And when we are largely satisfied at this social level, according to Maslow we simply move on to egocentricity. We all have egos, but what is an ego? It is a love of self. We look into the mirror and hopefully like what we see.

Insurance may be considered a game of risk in which individuals and businesses protect themselves, their families, and their property from possible losses resulting from unpredictable events such as storms, fires, accidents, and illnesses. The first rule of the game, devised centuries ago, is «share the risk». To play by this rule, many people take a small loss in place of one person’s taking a large one.

It is a simple idea: An individual pays a small amount of money called a premium to an agent who acts on behalf of an insurance company, or underwriter, which holds the individual’s premium and the premiums paid by thousands of others. The individual receives an insurance policy, a promise that if there is a loss to the individual as defined in the policy the insurance company will pay for it. The funds will come from the individual’s premium, the premiums paid by others who did not have losses, and money from the company’s investment of all the premiums. An individual who does not have a loss loses the premium money but purchases what insurance underwriters call «peace of mind». It is a gamble for both the customer and the underwriter, but it is built on the first rule of risk: those losses are small when shared by many.

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