Head Office, Bruce House, Bruce Street, Aberdeen ab9 1fr

Registered in Scotland No. 166051 Telephone: 022441615

VAT No. 54901013 Fax: 0224 62219

Telex: 247182

Your ref: Ourref: N3162-1 Date: 6 April 20—

Westway Insurance Co. Ltd.

Society House

Ellison Place

Newcastle-upon-Tyne NE1 8ST

Dear Sirs,

We would like to know if you could offer a comprehensive insurance policy covering us against fire, flood, accident, industrial injury, and theft.

We are a large warehouse selling furnishings to the retail trade, and employing a staff of thirty. The building we occupy belongs to us and is valued, along with the fixtures and fittings, at £250,000 and at any one time there might be stock worth £70,000 on the premises.

When calculating the premium, would you please take the following into consideration:

There are no open fires on the premises as central heating is used, and we have a fully operational sprinkler system which is serviced regularly. There are also numerous fire extinguishers strategically placed throughout, and fire exits on every floor.

The only danger from flood would be from burst pipes, as we are some distance from the river.

Since we began trading six years ago we have never had to claim for industrial injury, and damage to stock has been minimal. Finally, pilferage, which is common in warehouses, has only cost us £400 per annum on average.

Our present policy runs out at the end of this month, so we would require cover as from 1 May, and we would point out that we are changing insurance companies because of the increased rates that our former insurers are charging. So a competitive quotation would be appreciated.

Yours faithfully,

Daracott

12.3

Specimen letters

12.3.1

Request for comprehensive insurance

United Warehouses want to change their insurance company. In this letter they ask Westway Insurance for a quotation.

Questions

1. What sort of policy is United Warehouses asking for?

2. How many people do they employ?

3. What precautions have they taken against fire?

4. Is petty theft a problem for them?

5. Why are they changing their insurers?

6. Which words in the letter correspond to the following: full cover against all contingencies; store; place of work; looked after; checked; inundation; small; stealing a few things; insurance protection'?

В. Daracott

United Warehouses Ltd.

12.3.2

Quotation for comprehensive insurance

In this reply to United Warehouses' request, notice that there are three policies available offering cover under different conditions, but the writer draws attention to one of them, and offers to send an agent to explain the details. The rate of 65p% is mentioned for indemnification, i.e. to cover the client for compensation based on the market values of stock and machinery.

Westway Insurance Co. Ltd.

Chairman: Sir David Wedge Directors: M. Orwell I.P.A., C.R. Archer F.I.S., D.F. Clements

Regional Office, Society House. Ellison Place, Newcastle-upon-Tyne NE1 8ST

Reg. No: England 544712 Telephone: (0632) 326115 Ext: 417

Fax:(0632)501116 VAT No. 61 576192

Telex: 890410

Yourref: N3162-1 Ourref: 1/34/91675 Date: 9 April 20—

Mr B. Daracott

United Warehouses Ltd.

Bruce House

Bruce Street

Aberdeen AB91FR

Dear Mr Daracott,

Thank you very much for your letter of 6 April in which you enquired about our insurance cover.

I have enclosed leaflets explaining our three fully-comprehensive industrial policies which offer the sort of cover you require, and I think that policy A351 would probably suit you best as it offers the widest protection at 65p% with full indemnification.

If you wish, I could get one of our agents to call on you to discuss any details that might not be clear, or, if you are satisfied with the terms, please complete the enclosed proposal form and return it to us with your cheque for £195.00 and we will effect insurance as from 1 May this year.

I look forward to hearing from you soon.

Yours sincerely,

N. Sagum

District Manager

Westway Insurance Co. Ltd.

Chairman: Sir David Wedge Directors: M. Orwell I.P.A., C.R. Archer F.I.S., D.F. Clements

Regional Office, Society House. Ellison Place, Newcastle-upon-Tyne NE1 8ST

Reg. No: England 544712 Telephone: (0632) 326115 Ext: 417

Fax:(0632)501116 VAT No. 61 576192

Telex: 890410

Yourref: N3162-1 Ourref: 1/34/91675 Date: 17 August 20—

Mr E. Brockway

International Credit Cards PLC

1 17-120 Hardman Road

Sheffield S2 2RL

Dear Mr Brockway,

Thank you for your letter of August 15, in which you asked about bonding your employee, Mr Alfred Cade.

We have checked the references you gave us and he appears to have an excellent record. Therefore, we will cover Mr Cade for £30,000 on the understanding that he will only handle credit cards and customers accounts. If, however, he is going to deal with cash, would you please inform us at once?

Insurance will be effected as soon as we receive the enclosed proposal form, completed by you.

Yours sincerely,

N. Sagum

District Manager

Enc. Proposal form

12.3.5

Quotation for bonding an employee

International Credit Cards have asked if Westway would bond one of their employees, i.e. insure him against defrauding the company. Here is the reply.

12.3.6

Claim for fire damage

Here is a claim for fire damage from United Warehouses (see 12.3.1-2 for initial correspondence).

United Warehouses Ltd.

Chairman: B.R. MacDonald A.C.A. Directors: M.S. Souness, A. Gemill M.Sc.,