Part 2 Text b

Essential vocabulary

abandon abandonment Act of God/force major circumstances addendum to (pl. addenda) amendment to assess the damage average bring an action against cancel a policy claim for damages come to an end complete waif (for ships) cover current/present value damage damages date of expiry disclaim any liability erroneous statement expiry of a policy flotsam franchise get insured incur a loss insurance insured party insured value issue a policy jetsam jettison the cargo liability litigation loss meet a claim mutual consent at a month’s notice notification of loss loss (partial, total) policy holder premium renew a policy run aground settle a claim shipwreck subscribe a policy survey report surveyor take out an insurance … with a company … against a risk terms of the policy underwriter write-off (for cars)

відмовлятися відмова форс-мажорні обставини доповнення поправка визначати суму збитку аварія (збитки, заподіяні судну, вантажу й фрахту) збуджувати дії проти, притягати до суду скасовувати поліс позов про відшкодування збитків закінчуватися цілковитий уламок покривати поточна вартість збиток, втрата, ушкодження компенсація/відшкодування збитків; збитки термін закінчення заперечувати відповідальність помилкове твердження закінчення терміну дії полісу вантаж, змитий з корабля або викинутий в море під час аварії привілей, франшиза застрахуватися зазнати збитків страховка застрахована сторона страхова сума видавати страховий поліс вантаж, скинутий з корабля під час аварії і прибитий до берега викидати за борт під час аварії відповідальність позов втрата відповідати на позовну заяву взаємна згода з місячним повідомленням повідомлення про втрату втрата (повна, часткова) власник страхового полісу страховий внесок відновити страховий поліс піти на дно, затонути вирішувати спір корабельна аварія виписати страховий поліс звіт про обстеження, інспектування контролер, інспектор застрахуватися … у страховій компанії … проти ризиків умови страхового полісу страховик розбитий автомобіль

1. Using essential vocabulary read and translate the text.

Insurance

Sending goods by sea, air, road or rail makes it necessary to take out an insurance – or “get insured*”, “subscribe a policy” – with an insured company against any risk during transport. Shippers need not contact the insurer directly (or the underwriter as they are often referred to in marine insurance), instead, they can get in touch with an insurance broker who will act as middleman between the company who will issue the policy and the insured party – or “policy holder”.

When subscribing a policy, the shipper must make sure that the terms of the policy, or contract, cover all the risks that may occur. In particular, he must be aware of the distinction between the current value – or “present value” – of the goods and their insured value. In case of damage, the compensation may vary significantly according to the terms of the policy agreed on. However, should the subscriber desire an alteration to these terms, he can still ask his company for an addendum – or “amendment” – to the original contract.

Together with the risks covered, the policy should define the price to be paid by the insured party (“the premium”), the amount of the franchise* for any damage and the date of expiry of the policy. Most often, you can renew a policy yearly by mutual consent of the two parties. However, any of the parties can decide to cancel the policy by sending a letter of cancellation to the other party at, say, a month’s notice.

When an average takes place, the incurred party will send the insurer a claim for damages – also called “notice for claim” or “notification of loss“. In order to meet this claim – or “settle the claim” -, the insurer will ask a surveyor to assess the damage in a survey report. The compensation will vary according to the degree of the damage and it be partial or total loss.

The surveyor will also have to define the liabilities. When an Act of God (when nobody can be held responsible for the average) is recognized, e.g., one of the parties may disclaim any liability for the loss. Sometimes, the ship’s captain may have had to decide to jettison the cargo in order to prevent shipwreck (prevent the ship from sinking or running aground), which would have resulted in higher damage, i.e. the ship becoming a wreck – or “a complete waif”. (Note that for cars or lorries, the insurance company would refer to a complete waif as a “write-off”).

In some cases, the injured party may prefer the compensation to keeping the damaged goods, in which case he will abandon the goods to the company.

Should the injured party make an erroneous statement to the insurance company in the hope for receiving a higher compensation, the insurer will consider this a case for litigation and may bring an action against the party at fault.

Note:

*In both British and American English “ensure” means “to make certain”. In British English “insure” is only used to mean “to protect against loss or damage by means of insurance”. E.g.: “She insured her camera for five hundred dollars”. However in American English “insure” is used with both these meanings.

*franchise – an authority that is given by a company to someone, allowing them to sell its goods or services in a particular area

2. A. Find in the text terms concerning the insurance sphere and translate them into Ukrainian.

B. Find in the text word combination with these terms and translate them into Ukrainian.

3. Find in the text synonyms to the following words and word combinations.

insurance contract, insurer, take out an insurance, current value, insured party, notification of loss

4. Fill in the gaps with the right proposition using the vocabulary introduced in the text. Translate the word combinations into Ukrainian.

1. send goods … sea;

2. take … an insurance;

3. take out an insurance … any risk;

4. get … touch;

5. agreed …;

6. ask a company … for an addendum … the contract;

7. claim … damages;

8. … order to;

9. a case … litigation;

10. to bring an action … the party … fault

5. Fill in the gaps with the right expression using the vocabulary introduced in the text.

1. When you … the …, you are in fact extending the period of validity of your contract.

2. An alteration to an existing contract is called an … to the …

3. In case of accident, the insured party should send the company a … to state the facts.

4. The company will then delegate a … who will study the case and …

5. He will write a … to the company who will then be able to …

6. When a wreck cannot be repaired it is then considered a …

7. If the notification of loss turns out to be untrue, the insurance company may … against the insured party for making an …

8. When the two parties do not agree on the responsibilities for an average, it is a case of …

9. One of the main dangers for a vessel sailing in bad weather not far from the land is to …

10. In case of serious danger, the captain may decide to … the cargo to avoid severe damage to the ship and crew.

11. In Marine Law, a loss incurred by damage to a ship at sea or its cargo is called an …

12. When one of the parties … the contract, a letter of … is sent to the other party concerned.