risks 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

The main methods of transporting goods are road, rail, air and sea. Transporting goods by sea is called shipping. We all know that transportation and shipping interface with risks and that is why we should insure our cargo and prepare all necessary documentation.

I’d like to help you with it and to tell about some shipping documents and terms concerning insurance in foreign trade.

So, the first document - A Bill of Lading (b/l or blading) is a receipt given by the shipping company. The main document used by air transport is the Air Waybill (AWB). Unlike the bill of lading, the Air Waybill is only a receipt and cannot be transferred to another person.

The second ones - Consignment notes are used in road and rail transportation, and like the AWB they are not documents of title so ownership of the document does not mean ownership of the goods. They are not negotiable, i.e. they cannot be bought, sold, transferred by the consignor (the exporter), or the consignee (the importer).

There are a variety of vessels available for exporters to use when shipping goods safely:

— Passenger liners;
— Passenger cargo vessels;
— Tramps
— Tankers;
— Container vessels;
— Roll-on roll-off ferries;
— Barges (lighters).

Before the name of the ship, which is usually underlined in correspondence, the letter SS stand for Steam Ship and show that it is a British Merchant Vessel. MV, Motor Vessel or Merchant Vessel, and MS, Motor Ship are also used.

The main documents (besides bill of lading) used in shipping are:

— Freight account
— Dock receipt (wharfinger1s receipt)
— Shipped bill of lading

Good packaging is essential because it ensures that goods arrive at their destination in good condition. Therefore, the choice of packaging must suit the product, the means of carriage, handling facilities and any changes in climate during transport. In some countries, import duties are assessed according to the gross weight of shipments, which includes packaging. Therefore, the heavier the packaging the higher the duties will be. Goods packed separately, not in containers, are called conventional cargo.

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

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.

All insurance is a form of risk management. To deal with the unforeseeable risks to health through accident or illness, various types of health insurance programs have been devised. Health insurance is offered to individuals in two forms:

• individual plans
  
• group plans.
  

The insurers may be private companies or governments. Since the early 1970s another type of health-care coverage has become prominent:
 

the health maintenance organization, or HMO.

In some countries no insurance companies offer health care because governments have taken over the entire responsibility. China is a primary example. The United States has a combination of private and government-sponsored insurance. Some government programs are limited to specific groups within the population, such as veterans, members of the armed forces, and government employees. Others, specifically Medicare and Medicaid, are open to most of the population.

The purpose of health insurance is to provide protection against loss of income and to cover the expenses of hospitalization and some of its associated costs. Some policies also carry disability provisions, which will pay insured individuals, should they be unable to work because of extended illness or permanent physical disability. (Temporary disability is usually covered by workmen’s compensation.)

Accident insurance covers sudden and unexpected injuries, while sickness insurance applies to illness or disease. There are policies that cover accidents only, while normal health insurance covers accidents as well as illness.

Some policies are designed only to provide extra income during hospitalization. Many of these are known as mail-order policies, because they are sold to individuals who answer mailed solicitations or reply to ads in newspapers and magazines or on television.

“Blogging is the new model of interactive journalism,
COMMUNICATION and learning.”

from ABBYY Lingvo 11

Hi there!

Your favourite weblog -http://insurance.viaden.com/- found new author!!! Is it a good piece of news??? We will see… It was a really good and interesting blog and I will try not to spoil it. So, this weblog will be devoted to insurance, as before. It will be a kind of Live Journal where I will express my own opinion and comment on different events in the field of insurance.There is a good English saying: «Wise after the event». It means that it’s easy to give many pieces of advice after something happens. But it’s rather difficult to predict everything in order not to get involved in an unpleasant incident. And that is why you can be ensured against different risks with the help of insurance. And I will tell you about it… But, first of all, I would like to tell some words about myself. My name is Alexandra. I’m a third-year student of Belarusian State Economic University and study international economic relations. But I don’t content myself with my studies. I go mad on cinema and music, like to spend my time with friends and in Global Network. I am the author of the blog, devoted to global economy (http://globaleconomy.viaden.com/). Also I take a great interest in anime (Japanese animation) and Japanese culture (I am even trying to learn the Japanese language). I also collect English proverbs and sayings and use it anywhere, even out of place

I’m from Belarus. This is a country of blue rivers and green forests in the heart of Europe. I live in the capital of Belarus, in Minsk. My country and its culture are not well-known; many from distant lands mistakenly consider it as a part of Russia. But in some countries Belarus is known for its economy. For example, Australians and Cubans associate our country with tractors. >:-)

<:3 )~~
 It would be interesting to know what do the people, who will read this post, know about Belarus and it’s economy? What goods from this country do they use?  

Airbus-320 of “Armenian airlines” which carried out flight Yerevan - Sochi, crashed at the next landing approach in the airport Adler at 2:15 Moscow time. 113 person died: 105 passengers and 8 members of crew, including the commander of a board Grigory Grigoryan and second pilot Armand Davtjan. In the list of passengers - 26 citizens of Russia, 77 citizens of Armenia, one Ukrainian woman and the citizen of Georgia.
All lost in this crash passengers and crew were insured by Armenian insurance company “Grand”. Indemnification of $20 thousand will be paid to relatives of victims.
The liner A-320 of the “Armenian airlines” company was insured too, however the sum of compensation will be certain after an expert estimation.
The insurance company “Grand” has 100%reinsured its risks in the large London insurance company. The expert of this company is already invited to Armenia for carrying out technical expert appraisal of the plane. The insurance will be paid only in case of observance of all service regulations of the plane.
The “Armenian airlines” company has refused to comment any information on the insurance.
Meanwhile the chief of central administrative board of civil aviation of Armenia Artem Movisian has told that plane A-320 of the “Armenian airlines” company was in a serviceable condition. This plane has been manufactured in 1995 and has been at ”Armenia airlines” disposal on a leasing basis since 2004.
I’m wondering what’s gonna happen next. Such big insurance cases are usually take long-long time. And sometimes they end up with nothing. I mean no one owes no one.

The sum paid by the insurance companies all over the world in 2005 has reached record size - $72 billion the president of the Russian fund “Institute of the economic analysis ” Andrey Illarionov has informed on the II International conference on risk-management.
However he has noted that cumulative total insurance payments have not exceeded 0,15 % of world gross national product which comes to $50 trillion.
even in this record year.
Besides A.Illarionov has emphasized, that this total sum is average on all economic. For the different countries, branches and regions this size, naturally, changes. Nevertheless 0,15 % of gross national product are the sum for those risks which are insured and compensated.

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