Vocabulary and Speech Exercises. 9. Insert the appropriate prepositions:

9. Insert the appropriate prepositions:

1) Nowadays carrying__goods can be effected__sea,__air,__rail and__road. One transaction may involve both land and sea transportation, that is first goods may be carried__railway or road means__conveyance and then__ships. Henceforth the export trade is subject__many risks, because consignments may be damaged__transit.

2) Usually exporters insure their goods__all kinds__risk__professional insurance companies, __example Lloyd’s__Great Britain or "Ingosstrakh"__Russia, which__return__a fee known as a premium will compensate__them if any loss or damage__the goods occurs. Insurance is therefore a contract__indemnity which is called an Insurance Policy.

10. Read and translate the text using the dictionary if necessary:

Calculating of an Insurance Premium

An insurance premium is the name given to the sum of money paid by the firm insuring its goods, and is quoted as a percentage.

Normally goods are insured for the CIF value of the consignment plus 10 per cent of that figure. Using the CIF value means that, in addition to the price of the goods, the freight charges and insurance premium are also covered. The 10% means that, in the case of a total loss, the insured party receives some compensation for the expense of processing the claim and for any commercial loss.

As an example of calculating of an insurance premium let’s take a consignment with the value of $1000, a freight charge of $100 and an insurance rate of 0.75%. First we should calculate the CAF (C&F) value of the goods, which in this case is $1100 [= $1000 (value of goods) + $100 (freight)]. Then we calculate 10 per cent to this value, and the sum will be $110 [= $1100 × 10: 100]. This amount ($110) is added to the original $1100, so the goods will be insured for $1210. To define the insurance premium now means to calculate 0.75% of $1210, which is $9,08 [= $1210 × 0.75: 100].

Thus, the premium payable is $9,08 to which may be added a small administration charge which will not amount to more than a few pounds.

There are other ways of calculating insurance premium, but they involve more complicated formulas and so this method is widely used.

It is worth noting that the insurance premium of 0.75 per cent is widely quoted to many countries round the world, so this example is quite realistic.

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