English Language IV

Unit 22

What is insurance?

Insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount to be charged for a certain amount of insurance coverage is called the premium.

Unit 22Types of insurance

Life insurance

General (non-life) insurance

Auto/vehicle insurance

Property (home) insurance

Health insurance

Travel insurance

Pension, etc.

Unit 22 - Vocabularyto insure /ɪnˈʃɚ/ - to buy insurance for (something, such as property or health) - osiguratiHe insured the boat.

We insured our house against fire and flood damage.

insurance /ɪnˈʃɚrəns/ - an agreement in which a person makes regular payments to a company and the company promises to pay money if the person is injured or dies, or to pay money equal to the value of something (such as a house or car) if it is damaged, lost, or stolen - osiguranjelife insurance

insurance against theft or damage

health/medical insurance

Unit 22 - Vocabulary

insurance cover

insurance company

to insure

insurance

premium

underwriter

insured

insurer

Unit 22 - Vocabulary

premium /ˈpri:mijəm/ - the price of insurance, the amount paid for insurance – premija osiguranjaHealth insurance premiums went up again this year.

The monthly premium for your health insurance is deducted from your paycheck.

claim compensation – tražiti / zahtjevati nadoknadu, kompenzaciju

policy-holder /ˈpɑ:ləsiˌhoʊldɚ/ - a person who owns an insurance policy– vlasnik polise

underwriter – osiguravač, jemac, zastupnik osiguravajućeg društva

Unit 22 - Vocabulary

insured - a person who has insurance : a person whose life, health, or property is insured - osiguraniIn the event of an injury, the insured will receive payment in 90 days.

insurer /ɪnˈʃɚrɚ/ - a company that provides insurance – osiguratelj, osiguravačIn this policy, the insurer agrees to pay for all medical expenses.

the country's leading insurers

insurance broker (agent) - finds sources for (brokers) contracts of insurance on behalf of their customers – zastupnik osiguravajućeg društva, agent za osiguranje

Unit 22 - VocabularyW. A. clause = with average – insurance provision under which the insured cargo is covered for partial damage from seawater or loss from breakage, leakage, theft, etc. This cover, however, comes into force only when the damage or loss exceeds a certain percentage (usually 3 percent) of the cargo’s value.

free of particular average – insurance provision which limits the liability of an insurance company to only those losses that exceed a specified percentage of the value of the goods. It is similar to the deductible clause included in other types of insurance, but is not applicable where a cover for total loss is in force. FPA conditions are applied where the goods are extremely susceptible to damage, or are rendered almost worthless from exposure to water or heat.

Unit 22 - Vocabularyfloating policy – Insurance cover for situations where the total insurable amount can be reasonably estimated but cannot be determined accurately-enough for computing correct premium, until the insurance policy comes to an end. For example, a trader will take a floating policy on a sum estimated to be large enough to cover shipments during a period (say, one year) and pays premium accordingly. As the shipments are sent out, the insurer is informed and the value of those shipments is deducted from the insured sum. This procedure is repeated until the insured sum is almost exhausted. The insurer then recomputes the premium according to the total value of the already-sent shipments, and adjust it against the premium paid by the trader. At this stage the trader takes another floating policy and whole process starts over again.

Unit 22 - Vocabularytime policy – Insurance policy that covers risks arising during a specified period (three months, for example). In contrast a voyage policy covers risks that arise during an entire transit period irrespective of how long it takes. Insurance policy that covers both time and voyage policy are called mixed policy.

voyage policy – Marine policy that (unlike a time policy) provides cover for one trip, and usually protects only the cargo and not the ship (vessel).

open cover / policy - Marine cargo insurance that provides blanket cover against loss or damage to all goods transported by a specific shipper, during a stated period. Under its terms, the insured is required to periodically provide the insurer with the description, quantity, and value of goods shipped during that period.

Unit 22 - Vocabulary

Bill of Lading (B/L) – A document issued by a carrier, or its agent, to the shipper as a contract of carriage of goods. It is also a receipt for cargo accepted for transportation, and must be presented for taking delivery at the destination. Among other items of information, a bill of lading contains (1) consignator’s and consignee’s name, (2) names of the ports of departure and destination, (3) name of the vessel, (4) dates of departure and arrival, (5) itemized list of goods being transported with number of packages, (6) marks and numbers on the packages, (7) weight and/or volume of the cargo, (8) freight rate and amount. It serves as a proof of ownership (title) of the cargo, and may be issued either in a negotiable or non-negotiable form. In negotiable form, it is commonly used in letter of credit transactions, and may be bought, sold, or traded; or used as security for borrowing money. A bill of lading is required in all claims for compensation for any damage, delay, or loss; and for the resolution of disputes regarding ownership of the cargo. The rights, responsibilities, and liabilities of the carrier and the shipper under a bill of lading (often printed on its back) are governed generally either by the older Hague rules, or by the more recent Hague-Visby rules.

Unit 22 - Vocabulary

Commercial Invoice – Document required by customs to determine true value of the imported goods, for assessment of duties and taxes. A commercial invoice (in addition to other information), must identify the buyer and seller, and clearly indicate the (1) date and terms of sale, (2) quantity, weight and/or volume of the shipment, (3) types of packaging, (4) complete description of goods, (5) unit value and total value, and (6) insurance, shipping and other charges (as applicable).

Indirect SpeechIn direct speech we have the exact words of the speaker, e.g. He said, “I am learning English”. In indirect or reported speech we give the same meaning but with a different form, so that the words spoken are incorporated into the structure of the main sentence, e.g. He says that he is learning English.

Direct speech

John: “I live in London.”

Indirect speech

John said that he lived in London.

Indirect SpeechWhen the verb in the principal clause is in the Present Tense, Present Continuous Tense, Present Perfect Tense or Future Tense, the verb in the reported sentence will not change

Direct speech:

“This work is too difficult.”

Indirect speech:

He says (that) this work is too difficult.

He is saying (that) this work is too difficult.

He has said (that) this work is too difficult. He will say (that) this work is too difficult.

Indirect Speech

When the verb in the principal clause is in the

Past Tense, the verb in the reported sentence will

change in the following manner:

Tense Tense

Present Simple Past Simple

Present Continuous Past Continuous

Present Perfect becomes Past Perfect

Past Simple Past Perfect

Future Tense:

shall/will

Future in the Past:

should/would

Conditional Perfect Conditional

Indirect SpeechI write home every week. → He said (that) he wrote home every week.

I go to my class every day. → He said (that) he went to his class every day.

I am learning English. → He said (that) he was learning English.

I have learned English. → He said (that) he had learned English.

I will see her in London. → He said (that) he would see her in London.

I have been playing football. → He said (that) he had been playing football.

I wrote a letter to my brother. → He said (that) he had written a letter to his brother.

I can speak German. → He said (that) he could speak German.

I may be able to go. → He said (that) he might be able to go.

I don’t write every week. → He said (that) he didn’t write every week.

I don’t go to my class every day. →He said (that) he didn’t go to his class every day.

If I had my pen, I could write the answers. → He said (that) if he had had his pen, he could have written the answers.

In short, the reported verb goes one step in the past.

Indirect Speech

The pronouns and possessive adjectives

generally change as follows:

Direct Indirect

I, me my, mine he(she) his (her), hers,

his

him (her)

we, us our, ours they, them their, theirs

Indirect Speech

Words denoting “nearness” become the

corresponding words denoting remoteness:

this that

these those

here there

now then

ago becomes before

today that day

tomorrow the next day

yesterday the previous day, the day before

Indirect SpeechI saw the boy here in this room today. → He said that he had seen the boy there, in that room that day.

I will see these boys now. → He said he would see those boys then.

I spoke to them yesterday. → He said that he had spoken to them the day before.

I will teach the same lesson tomorrow that I taught two days ago. → He said that he would teach the same lesson the next day that he had taught two days before.

I will do it here and now. → He said that he would do it there and then.

George said: “This is the house where Shakespeare was born.” → George said that that was the house where Shakespeare had been born.