25. Obligatory and voluntary types of insurance in Russia and abroad.

Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium. An insurer is a company selling the insurance. The insurance rate is a factor used to determine the amount, called the premium, to be charged for a certain amount of insurance coverage. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.

RUSSIA.

Obligatory:

Health (medical) insurance

Car insurance

Tourist insurance

Voluntary:

# 2 Страхование имущества

* 2.1 Огневые риски и риски стихийных бедствий

* 2.2 Страхование перерыва в бизнесе

* 2.3 Страхование строительно-монтажных рисков

* 2.4 Страхование КАСКО

# 3 Страхование ответственности

* 3.1 Страхование общей гражданской ответственности перед третьими лицами

* 3.2 Страхование ответственности товаропроизводителя, производителя услуг

* 3.3 Страхование ответственности директоров и офисных сотрудников

* 3.4 Страхование профессиональной ответственности

* 3.5 Страхование ответственности работодателя

* 3.6 Страхование ответственности за нанесение вреда экологии

* 3.7 Договорная ответственность

* 3.8 Страхование ответственности владельца автотранспортного средства

* 3.9 Страхование ответственности владельца автотранспортного средства при выезде зарубеж (Зеленая карта)

# 4 Личное страхование

* 4.1 Накопительное страхование жизни, пенсионное страхование

* 4.2 Страхование от несчастного случая

* 4.3 Медицинское страхование

# 5 Страхование финансовых и специфических рисков

* 5.1 Страхование невыполнения финансовых обязательств

* 5.2 Титульное страхование

* 5.3 Страхование политических рисков

ABROAD

Obligatory:

Health, Car

Voluntary:

* 5.1 Health

* 5.2 Disability

* 5.3 Casualty

* 5.4 Life insurance

* 5.5 Property

* 5.6 Liability

* 5.7 Credit

* 5.8 Other types

* 5.9 Insurance financing vehicles

26. Forms of international settlements.

By FEdunin: ADVANCE PAYMENT, COLLECTION (ИНКАССО), LETTER OF CREDIT, OPEN ACCOUNT (RARE) The collection provides protection to the seller than selling on open account and provides protection to the buyer than prepaying the shipment. The seller has the protection that the buyer cannot obtain possession of the merchandise without paying the sight draft or accepting the time draft. The buyer knows that when funds are paid, the merchandise has been shipped. Both parties are willing to bear the slight costs involved for the advantages to each.

Disadvantages of the collection are the following: for the seller, who is exposed to non-payment by the buyer either from the buyer’s death, bankruptcy or refusal to pay. An unscrupulous buyer may refuse to pay in the hope thereby to negotiate better terms.

There are two types of collections: clean collection (financial document alone) and documentary (commercial documents either with a financial document alone) . A financial document is a check or a draft; a commercial document is an invoice, bill of lading or other shipping documents.

The exporter delivers the merchandise to the shipping company and receives a full set of ocean bills of lading consigned to the order of the exporter. The exporter endorses the bill of lading, in bank, and takes them, along with invoices, insurance, a draft drawn by the individual exporter on the importer to the bank. The exporter instructs the bank to act as his agent and to present the draft and the documents to the importer through a bank in the latter’s country. The crux of the transaction is that only when the importer pays the draft will the foreign bank the importer to take possession of the negotiable bill of lading. The importer’s bank notifies the importer when the draft and documents have been received. Upon paying the draft, the importer receives the accompanying documents, one of which is the endorsed bill of lading, which enables the importer to obtain the goods from the steamship company.

A letter of credit is an instrument issued by a bank on behalf of one of its customers, authorizing an individual or firm to draw drafts on the bank or on one of its correspondents for the bank’s account under certain conditions stipulated in the credit.

Letters of credit can be either revocable or irrevocable. Irrevocable cannot be cancelled or changed without the consent of all parties concerned, particularly the beneficiary. Revocable can be cancelled or changed solely at the buyer’s request.

The letter of credit substitutes a bank’s credit for that of a customer and thereby facilitates payment from buyer to seller. The transaction rests on the movement of documents that are the evidence that the shipment, as agreed upon, has taken place. By issuing the letter of credit the buyer can find comfort in knowing that the seller knows that he will be paid as soon as he ships regardless of any change in the buyer’s financial standing.

A letter of credit is considered a self-liquidating extension of credit. This means that the banker expects to be repaid from the transaction itself and does not expect to have to rely on the other collateral as the primary source of payment. The banker will usually want evidence that the merchandise is insured as an added protection. From the time the bank issues the letter of credit until the draft and documents are presented to it for payment, the bank lends only its credit. The bank must be repaired for presentation of the documents and the demand for payment at any time during the life of the letter of credit. The timing of the presentation is completely at the option of the seller