South Bank House, Borough Road, London se1 oaa

Reg No: London 3395162 Telephone: 071 928 7716

VAT No: 41 618231 59 Telex: 988153

Fax: 071 928 7111

Worldwide Insurance Ltd. 15 May 20—

Worldwide House

Vorley Road

London N19 5HD

Dear Sirs,

We will be sending on behalf of our clients, Delta Computers Ltd., a consignment of 20 computers to N.Z. Business Machines Pty., Wellington, New Zealand. The consignment is to be loaded on to the SS Northern Cross which sails from Tilbury on 18 May and is due in Wellington on 25 June.

Details with regard to packing and values are attached, and we would be grateM if you could guote a rate covering all risks from port to port.

As the matter is urgent, we would appreciate a prompt reply. Thank you.

Yours faithfully,

J.D. Simpson

Supervisor

Enc.

WORLDWIDE INSURANCE Ltd.

Worldwide House, Vorley Road, London N19 5HD

Telephone: 071 263 6216 Fax: 071 263 6925 Telex: 211121

Chairman: A.L. Galvin АСА FIS Registered in England No. 6 915614

Managing Director: P.R. Erwin CIS VAT No. 56 341 27

Directors: L. Swanne, T.R. Crowe MC, H.B. Sidey MA

Your Ref: Our Ref: Ml-C 167932 Date: 16 May 20—

Mr J. D. Simpson

Kent, Clarke & Co. Ltd.

South Bank House

Borough Road

London SE10AA

Dear Mr Simpson,

Thank you for your letter of 15 May, in which you asked about cover for a shipment of computers from Tilbury to Wellington.

I note from the details attached to your letter that the net amount of the invoice is £22,000, and payment is by letter of credit. I would therefore

We will issue a cover note as soon as you complete and return the enclosed declaration form.

Yours sincerely,

D. Adair

Manager

Enc. Declaration form

12.5.2

Quotation for marine insurance

In this reply to Kent, Clarke, Worldwide suggest a valued policy, thus covering the consignment for £22,000 plus 10%, against all risks including war, strike, and normal and exceptional damage. Insurance will be effected from the date the ship leaves port to its arrival. A declaration form gives the insurance company information about the shipment so they can prepare an insurance certificate.

12.5.3

Certificate of insurance

Questions

1. Who will claim compensation if there is damage or loss?

2. Who are the brokers on this certificate?

3. To what destination is the consignment covered?

4. What is the total cover for the consignment?

5. What do the letters pp stand for?

6. When must the consignment be shipped?

7. What type of policy is this?

8. What is the name of the ship carrying the consignment?

GLASTON POTTERIES Ltd.

Clayfield, Burnley BB10 IRQ

Tel: 0315 46125 Registered No. 716481

Telex: 8801773 VAT Registered No. 133 5341 08

Fax: 0315 63182

Mr D. Adair 5 March 20—

Worldwide Insurance Ltd.

Worldwide House

Vorley Road

London N19 5HD

Dear Mr Adair,

We have been insuring individual shipments of our chinaware with you for some time now, and as you have probably noticed we have established a number of customers in North and South America.

As we will be making regular shipments, we wondered if you could arrange open cover for £60,000 against all risks to insure consignments to North and South American Eastern seaboard ports.

We look forward to hearing from you soon,

Yours sincerely,

E.F. Goodman

Export Department

12.5.4

Request for open cover

Glaston Potteries have built up a regular trade with customers across the Atlantic. They now ask for open cover insurance for their shipments.

Questions

1. Why does Glaston want the policy changed?

2. Do Glaston ship general merchandise?

3. What is the destination for Glaston's consignment?

4. Will the policy indemnify against any eventuality, or only in particular cases?

5. Look at letter 12.5.5 and work out Glaston's premium.

6. Which words in the letter correspond to the following: particular, set up; general insurance for a number of shipments; thought?

12.5.5

Quotation for open cover

In an open cover agreement, the exporter can be certain that the consignment is insured once he sends the declaration form. Settlement may either be on a monthly or quarterly basis, or per shipment. When insurance cover is nearly used up, the insurance company will inform the client and ask if he wants to renew the policy.

WORLDWIDE INSURANCE Ltd.

Worldwide House, Vorley Road, London N19 5HD

Telephone: 071 263 6216 Fax: 071 263 6925 Telex: 211121

Chairman: A.L. Galvin АСА FIS Registered in England No. 6 915614

Managing Director: P.R. Erwin CIS VAT No. 56 341 27

Directors: L. Swanne, T.R. Crowe MC, H.B. Sidey MA

Your Ref: Our Ref: Ml-C 167932 Date: 7 March 20—

MrE.F. Goodman

Export Department

Glaston Potteries Ltd.

Clayfield

Burnley BB10 IRQ

Dear Mr Goodman,

In reply to your letter of 5 March, I am pleased to say that we can arrange an all risk open cover policy for chmaware shipments to North and South American seaboard ports.

As you propose to ship regularly, we can offer you a rate of £2.48p% for a total cover of £60,000.1 am enclosing a block of declaration forms, and you would be required to submit one for each shipment giving full details.

I look forward to receiving your confirmation that these terms are acceptable.

Yours sincerely,

D. Adair

Manager

Enc, Declaration forms

GLASTON POTTERIES Ltd.

Clayfield, Burnley BB10 IRQ

Tel: 0315 46125 Registered No. 716481

Telex: 8801773 VAT Registered No. 133 5341 08

Fax: 0315 63182

Mr D. Adair 14 July 20—

Worldwide Insurance Ltd.

Worldwide House

Vorley Road

London N19 5HD

Dear Mr Adair,

Open Cover Policy ОС 515561

Please note a shipment we are making to our customers MacKenzie Bros., Canada, the details of which are on the enclosed declaration form, No. 11765913.

Yours sincerely,

E.F. Goodman

Export Department

Enc.

12.5.6

Notification of shipment under open cover

Glaston Potteries have made a shipment to Canada.

12.5.7

Claim under open cover agreement

One of Glaston Potteries' shipments to Canada has been damaged.

GLASTON POTTERIES Ltd.

Clayfield, Burnley BB10 IRQ

Tel: 0315 46125 Registered No. 716481

Telex: 8801773 VAT Registered No. 133 5341 08

Fax: 0315 63182

Mr D. Adair 19 October 20-

Worldwide Insurance Ltd.

Worldwide House

Vorley Road

London N19 5HD

Dear Mr Adair,

Policy No, ОС 515561

We would like to inform you that a number of pieces of crockery were damaged on our shipment to MacKenzie Bros, of Dawson, Canada. The consignment was shipped clean on the SS Manitoba which left for Canada on 16 September, and you have our declaration form No. 11765916.

We have already sent our customers replacements but would like a claims form to complete. Thank you.

Yours sincerely,

E.F. Goodman

Export Department

WORLDWIDE INSURANCE Ltd.

Worldwide House, Vorley Road, London N19 5HD

Telephone: 071 263 6216 Fax: 071 263 6925 Telex: 211121

Chairman: A.L. Galvin АСА FIS Registered in England No. 6 915614

Managing Director: P.R. Erwin CIS VAT No. 56 341 27

Directors: L. Swanne, T.R. Crowe MC, H.B. Sidey MA

Your Ref: Our Ref: Ml-C 167932 Date: 23 October 20—

Mr E.F.Goodman

Export Department

Glaston Potteries Ltd

Clayfield Burnley BB10 IRQ

Dear Mr Goodman,

Policy No. ОС 515561

I am sending you the claims form you requested in your letter dated

19 August 20—. We will consider the matter once we have full details.

I think I ought to point out that this is the fourth time you have claimed on a shipment, and though I appreciate your products are fragile, and that in each case the goods have been shipped clean, it would be in your interest to consider new methods of packing. I agree that the claims have been comparatively small, but in future you will have to ask your customers to hold consignments for our inspection to assess the cause of damage. I should also mention that further claims may affect your premium when the policy is renewed.

Yours sincerely,

D. Adair

Manager

Enc. Claims form

12.5.8

Reply to claim under open cover agreement

Worldwide are willing to accept Glaston Potteries' claim, but they are not too pleased about it.

Questions

1. What sort of policy have Glaston Potteries got?

2. Why does the insurance company think that their premium may be increased when the policy is renewed?

3. Why do they think Glaston have made so many claims in the past?

4. When will the insurance company consider the claim?

5. What does Mr Adair mean by 'shipped clean'?

6. Which words in the letter correspond to the following: subject; information; understand; goods taken aboard without damage to them; keep; work out; the cost of insurance?

12.5.9