Read and translate the following text:

The export trade is subject to many risks. Ships may sink or consignments may be damaged in transit, exchange rates may alter, buyers default or governments suddenly impose an embargo.

Exporters can insure themselves against many of these risks. The cover paid for will vary according to the type of goods and the circumstances: delicate goods, such as breakable crockery, cotton piece-goods or perishable foodstuffs, obviously have to be covered against more risks than sturdy articles like steel girders.

Regular shippers may take out a floating policy which gives automatic cover for a fixed maximum value of shipments, based on the previous year’s trade, provided each shipment is declared when made. Open cover is an even more flexible type of insurance, limited to twelve months, at agreed terms and rates. In both these cases a certificate of insurance is issued instead of a policy. Aviation insurance follows marine insurance very closely, but on the whole is much cheaper.

There are some risks, however, that cannot be covered by normal insurance. Fluctuations in exchange rates may be overcome by buying or selling forward exchange, but against the actions of government, like embargoes, a shipper can only protect himself by making special arrangements with his own government; in the U.K. this is done through the Export Credit Guarantee Department.

Answer the questions:

1. Name some risks to which the export trade is subject.

2. Against which of these risks can exporters insure themselves through insurance companies?

3. What is a floating policy?

4. When is a certificate of insurance issued instead of a policy?

5. How do you cover yourself against fluctuations in exchange rates?

Find out which definition on the right matches which word on the left. Decide which word goes in which gap in the passage below.

a. premium 1. A person who advises on insurance

b. underwriter 2. A document which proves you are insured

c. insurance company 3. Payment for insurance

d. broker 4. Insurance protection

e. claim 5. A form you fill in when you apply for

insurance

f. compensation 6. An insurer at Lloyd’s of London

g. small print 7. A limited liability company selling cover

h. policy/insurance certificate 8. The conditions and clauses in a document

i. proposal form of insurance, usually in small print

j. cover 9.You are paid ...... when your insured

property is damaged

10.A request for payment when your

insured property is damaged

Mr Bean wanted to insure his shop. He wanted………….against fire and theft. He filled in the……….and sent it to his………..who arranged the insurance with an…………Mr Bean had to pay quite a high…………each year, but it was worth it because a lot of goods were stolen. Mr Bean put in a ………..for…………Unfortunately the………..refused to pay him the full amount. Mr Bean had not read the……….in his…………properly.

ROLE PLAYS.

1. You are going to insure your cargoes, but your Managing Director thinks it is a waste of money. Try to persuade him.

2. Your consignment has been damaged beyond repair. Telephone your supplier and settle the problem.