Block 4. Insurance clauses

LEAD-IN

• Do all sales contracts contain an insurance clause?

• What does an insurance clause cover?

FOCUS 1¹

I. All insurance policies required of the Contractor under this contract shall contain endorsements that the underwriters will have no rights to sue, recover, claim and/ or subrogate any loss and/ or damages of any nature for any reason against the Operator, its subsidiary and affiliated companies or their agents, directors, officers and employees.

II. The failure to secure the insurance cover and/ or to fully comply with any of the provisions of the insurance conditions of this Contract and/ or the policies and/ or to secure endorsements of the policies shall not in any way relieve the Contractor of its obligations under this Contract. In any event, where any loss, damage or injury is rejected by the insurers in whole and/ or in part for any reason and/ or if the Contractor fails to maintain the required insurance and/ or for any other reason, the insurance cover will not result in the Company receiving the sums it is owed. The Contractor agrees that it shall indemnify the Company, its subsidiaries and affiliates, agents, employees, directors, officers, vessels and insurers against all claims, demands and actions of any nature including all costs, expenses, legal fees of counsel and solicitors, investigation agencies, and any other litigation expenses and/ or liabilities which would otherwise be covered by the insurance that was agreed between the parties pursuant to this Contract.

III.² The Organiser agrees that it shall at its sole cost arrange insurance against the Event not taking place for any reason for the benefit of the Organiser and the Sponsor in the sum of _____ so that the cost of _____ may be recouped in such case by the Sponsor. The Organiser agrees to provide the Sponsor with validated copies of such insurance policies upon request. The Organiser agrees that he shall not do, omit or permit any act which would result in the insurance policies being declared invalid or which would result in then not being in force. The Organiser agrees to notify the Sponsor in the event of any circumstances which may arise which may result in a claim under the insurance policies and shall not settle any such claim without prior written approval of the Sponsor. Any sums paid by the insurers to the Organiser which are for the benefit of the Sponsor shall immediately be paid to the Sponsor without delay.

IV. In the event that the Company shall not arrange and/ or maintain the agreed insurance cover then the Contractor may arrange such insurance and pay the premiums and shall be entitled to deduct such sums from moneys due to the Company and/ or pursue an action for recovery of the debt.

V. Goods shall be insured by the Sellers with the Ingosstrakh of the RF on a.a.r. conditions in accordance with Para 2 Clause 1 of the Transport Insurance Rules of the Ingosstrakh of the RF.

Insurance Policy to be issued in the name of the Buyers for ___ per cent of the cif value of the goods.

Insurance against war and strike risks to be made at the Buyers’ request and for their account.

VI. Marine risk insurance to be covered by the Buyers and confirmed to the Sellers upon their first request at least 5 days prior to loading.

VII. Marine insurance for the invoice amount plus 10 per cent shall be covered by the Sellers.

For underdeck cargo. With particular average subject to §2 of the Transport Insurance Rules including damage caused by hook, oil, fresh water and other cargo, and also including breakage, theft, pilferage and non-delivery.

For deck cargo. Subject to §2 of the Transport Insurance Rules, free from particular average unless caused by the vessel being stranded, sunk, burnt, in explosion or in collision with any external substance, including non-delivery and jettison and washing overboard.

For all cargo. Claims not payable if amounting to 0.5 per cent of the insured value or to 10 pounds sterling, whichever is the lesser sum. The obligation to insure against war risks shall be on the Buyers.

VIII. The Buyer is to take care of and to cover expenses for insurance of the goods under the present contract with Ingosstrakh from the moment of their loading on board the truck up to the moment of the arrival at the Buyer’s works.

The Seller is to take care of and to cover expenses for insurance of the goods with Ingosstrakh from the moment of their loading on board the truck at the rate of … per cent of the insurance amount.

FOCUS 2. COMMENTARY AND VOCABULARY NOTES

COMMENTARY 1. See IV. … moneys… - денежные суммы

Одним из распространенных способов образования новых лексических единиц в английском языке является модификация значения во множественном числе. В частности большое количество абстрактных имен существительных, не имеющих в своем основном значении множественного числа, получают форму множественного числа со значением, отличным от основного. Например,

security (безопасность; обеспечение – нет формы множественного числа) → security (ценная бумага – множественное число securities);

insurance (страхование - нет формы множественного числа) → insurance (договор страхования - множественное число insurances); insurances (акции страховых компаний – нет формы единственного числа);

money (деньги – нет формы множественного числа) → moneys (денежные суммы – нет формы единственного числа)

COMMENTARY 2. See V.

… on a.a.r. conditions… - …на условиях “от всех рисков”

→ a.a.r. - “against all risks”