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UNIT NINE
Insurance In this Unit you will learn about some basic types of insurance. In Section A you will became acquainted with some basic insurance vocabulary, basic types of insurance and some aspects of liability insurance. In Section B you will read (and write) about motor insurance; and in Section C you will be asked to translate a Hungarian article into English. Section D consists of questions which will help you remember Sections A-C.
Section A INSURANCE VOCABULARY 1. Match the following basic insurance terms with the definitions below Terms insurance policy claim utmost good faith compensation
insured application (US)/proposal (UK) beneficiary premium
Definitions: (1) A demand for payment for a loss under the terms of an insurance contract: .......................................... (2) A written contract between an insurance company and somebody who wants insurance cover. It specifies terms and conditions under which benefits will be paid: ......................................... (3) The individual or firm protected in the case of loss under the terms of an insurance policy: ......................................... (4) A form in which information is provided by a person requesting insurance: ......................................... (5) The price that a policyholder pays for insurance cover: ......................................... (6) Payment which the insurance company makes to the policyholder under the terms of the policy in the event of a claim : ......................................... (7) The person named in a policy who will receive the benefits under the policy: .........................................
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(8) When applying for insurance, it is necessary to declare anything that might affect the insurer’s willingness to provide cover. This makes the contract one of ................................................. . 2. Read this passage about insurance The purpose of insurance companies is to take over from individuals specific risks in return for a payment known as premium. They can do this because, although the risk is uncertain for an individual, it is not so for a company which specializes in risks of a particular type. A businessman can have no idea whether his factory will be damaged by fire next year, nor can a motorist know whether he/she will meet with an accident. However, an insurance company is in a different position. On the basis of claims experience and detailed statistical analyses, insurers are able to assess risks.
3. Now try to complete the following sentences. Write one word in each gap An (1).................... company, or (2).................... , is a risk-sharing firm that agrees to assume financial responsibility for losses that may result from an insured (3).................... . One can join the risk-sharing group by buying a contract or, to put it in a different way, by taking out a (4).................... . Under the (5).................... , the insurance company agrees to take over the risk for a fee—also called a (6).................... —paid periodically by the insured or the (7).................... .
4. Read this passage about the different types of insurance. The following exercise might help you understand it There are several types of insurance to be distinguished. Marine insurance covers ships and cargoes for maritime perils. Much of this insurance is done through the institution known as Lloyd’s, which is not an insurance company in the normal sense but rather an insurance market. The society consists of around seven thousand members (all of them underwriters, which means insurers). No one can do business with Lloyd’s directly. You have to go to an insurance broker who will then contact a member of Lloyd’s for you. If you want to insure something expensive—like a fleet of jumbo jets, for exampleyour broker will probably have to contact a syndicate of underwriters because the risks would be too high for one party to cover. By far the most important category of insurance from the viewpoint of sources of finance is life assurance. This differs from the other types in one important respect. Whereas in the case of fire or accident insurance there is uncertainty whether an accident will take place or not, in the case of life assurance there is no doubt as to whether a person will die. The uncertainty is when the unfortunate event will take place.
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5. Find the English equivalents of the following Hungarian words in the passage above (1) flotta (2) baleset bekövetkezik (3) tengerrel kapcsolatos kockázatok (4) amíg (5) biztosítók csoportja
........................................ ........................................ ........................................ ........................................ ........................................
6. Complete the sentences below with the appropriate sentence beginnings in the box. These definitions might help you Definitions burglary collision defective disrupt marine occur power cut predict robbery theft uninsured motorist
breaking into a house to steal when a car runs into another car imperfect, faulty cause to stop, disturb in connection with the sea and sea trade happen, take place a temporary stop in the supply of electric energy say, tell in advance that something will happen taking someone’s property by force stealing something driver without insurance
A. Most businesses purchase B. Business interruption insurance pays for C. Liability insurance protects D. Automobile insurance covers E. By using the law of large numbers, F. Marine insurance covers G. Life assurance enables you to provide for your relatives on H. Public liability covers most types of risks, while product or service liability protects Sentences (1) ..................................................................................... insurance companies can predict the probability that a particular loss will occur. (2) ....................................................................................... ship owners against damage to the ship and its cargo. (3) ...................................................................................... the policyholder against claims resulting from bodily injury, medical payments, uninsured motorists, property damage, and collisions. (4) ........................................................................................... insurance to protect against burglary, robbery, and theft.
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(5) .......................................................................................... a business against damage claims made by the public. (6) ........................................................................................... the firm against injury to the public from defective goods. (7) .......................................................................................... losses resulting from uncontrollable events (e.g. power cuts) that temporarily disrupt a business. (8) ...................................................................................................... death or to provide for your own retirement. 7. Which type of insurance in the exercise above does the following extract illustrate? An individual offering a service is responsible for correctly and properly administering that service. A doctor in the USA cannot provide medical services without this kind of protection. A misdiagnosis could cost hundreds of thousands of dollars in lawsuits. And doctors are not alone in this regard. Other professionals, such as lawyers, accountants, insurance agents, and even hairdressers must carry this type of insurance. One beauty salon had to pay $20,000 in damages because of injury to a customer’s hair when a cold wave was applied incorrectly. Lawsuits of this kind can affect society as well as individuals. The settlement for such cases result in higher insurance premiums and higher prices for goods and services. In an effort to keep down the costs of this type of insurance, the majority of the states in the USA have taken action to limit damage awards. The purpose of these legislative measures is to keep insurance premiums reasonable for businesses and consumers. 8. Translate the extract in exercise 7 into Hungarian 9. Rearrange the words in the box to complete the sentences in the passage below Words (1) covered, to, needs, what, be (2) insurance, the, for, public, need, liability
(3) by, injured, customer, was, a (4) for, the, met, £15,000, claim
Passage According to some British insurers, small business owners often take an unduly narrow view of (1) ............................................................ . They will take out insurance for £200 worth of tools which they could replace themselves but fail to consider (2) ............. ..................................................... . Henry Bridge, founder of a small chain of DIY shops, was glad he had taken out public liability cover, when a (3) ............................................................ pile of boards dislodged by another customer. Bridge’s insurer (4) ............................................................ which would have otherwise made a big dent in the company’s profits.
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10. The text in exercise 9 above has been partly translated for you. Can you provide the missing parts? .............................................................................................................................................. ............................... gyakran túlságosan is kevés dologra kívánnak biztosítást kötni. .............................................................................................................................................. ................................................... pótolni, de megfeledkeznek a közfelelősségbiztosítás fontosságáról. Henry Bridge, egy kis barkácsbolt-hálózat ................................................... .............................................................................................................................................. ............................................................................. . Az történt, hogy egy másik vevő rádöntött egy halom deszkát. ............................................................... ..........................................................................................................................................., ami egyébként jelentősen megcsapolta ........................................................ ...................................................................... .
11. Read the following passage about insurance companies Insurance companies manage huge sums of money. The great importance of these funds arises from the fact that they are accumulated over long periods and are invested in ways which allow for claims to be met and profits to be earned. The total accumulated funds of British insurance companies stood at over £90,000 million at the beginning of the 1990’s. Government securities used to be their largest asset, but an increasing proportion of the total is now in the form of ordinary shares in companies. To insurance companies, this gives a significant role in the ownership structure of British industry.
12. Using the following expressions, rewrite the passage in exercise 11 (1) .......... very large amounts .......... (2) These funds are very .......... because.......... collected ..........invested……. .......... allow insurance companies to .......... (3) .The total ......... insurers were larger .......... in the early 1990s. (4) .Before then, ......... largest asset, but ……… now in the form …… in companies. (5) That is why insurance ..........
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Section B MOTOR INSURANCE 1. Read the following information about motor insurance Motor cars have been insured since the early days of motoring but third party personal injury cover became compulsory in the U.K. in 1930. The main types of cover in Britain are the following: Third party only
Third party fire & theft
Third party fire and theft cover Legal liability for damage Fire and theft insurance to third party property on the car itself
Third party only cover
Comprehensive Legal liability for death or injury to any person Cover for other accidental damage to the car
You have to report an accident to the police if anyone, apart from yourself has been injured any other car has been damaged any property on or near the road has been damaged. 2. Open dialogue. Look at the drawing below then play the witness’ part in the dialogue N Aberdeen St
Pedestrian witness
A
Halt sign X
A
W
E
B Glasgow Rd
B S
Open dialogue Policeman: Good morning, sir. Did you see the accident? You: ........................................................................... P: Would you be able to say when exactly it happened? Y: ........................................................................... P: And where were you standing? Y ........................................................................... P: Could you tell me exactly what happened? Y: ...........................................................................
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P: Y: P: Y: P: Y: P: Y:
I see, so the Ford came out of Aberdeen Street without stopping. At what speed would you say was it travelling? ........................................................................... Yes, I know it is difficult to guess the speed, but could you be a bit more specific? ........................................................................... About 35 ... . And the Volvo? ........................................................................... So it was heading East at about 30 miles per hour. Thank you very much, sir. Could I have your name and address? ...........................................................................
3. Completing the sentences below, write a report of the accident as seen from the position of the witness At 11.15 on 29 February I was ................................................... ............................................................................... ................................................ Street. A Volvo was .......................................................................................... ................................................... . A Ford was travelling along ............................. .......................................... and crossed Glasgow Road without ......................... . ......................................................... front of the Ford. Luckily, no one ............... ..................................................................... . 4. Answer these questions (a) Which type of cover in ex. 1. would have best suited driver B? Why? (b) Would “Third party fire and theft” cover have been better for driver B than “Third party only” cover? Why/Why not? (c) Did the accident have to be reported to the police? 5. Read the following extract from a British motor insurance policy and then try to rewrite it in more simple English CLAUSE 13
BONUS FOR NO CLAIM
Should no claim be made or arise under this Policy during any one complete year or during a number of consecutive complete years the insured upon renewing the said Policy shall be entitled to a rebate from the renewal premium on the following scale: One year free of claim 30 per cent rebate Two consecutive years free of claim 40 per cent rebate Three consecutive years free of claim 50 per cent rebate Four or more consecutive years free of claim 60 per cent rebate
Begin like this If you don’t .................................... ........................................................... .............................................................................................................................
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Section C 1. Translate the following article into English BRIT AUTÓBIZTOSÍTÁS A magyar kötelező biztosításnak Angliában az úgynevezett „harmadik személyre vonatkozó” biztosítás felel meg, amely leginkább annak a félnek az érdekét védi, aki nem önhibájából szenvedett sérülést vagy anyagi kárt egy baleset során. Hasonlóan a jelenleg érvényes magyar szabályokhoz, a közúti gépjármű ellenőrzések során az angol vezetőknek is igazolniuk kell, hogy rendelkeznek ezzel az alapbiztosítással. A kötelező biztosításnál lényegesen magasabb az úgynevezett „általános” biztosítás díja – ez felel meg lényegében a magyar casconak. Igaz, az árnak megfelelően a szolgáltatások is kiterjedtebbek: szinte mindenfajta kár esetén fizethetnek térítést. A biztosítási díj megállapításához szükséges kérdőív kitöltése időigényes feladat. A válaszoktól függ a biztosítási díj nagysága. Például minél értékesebb a kocsi, annál magasabb a díj. Az életkortól is sok függ. Egy tapasztalatlannak számító vezető nagyobb kockázatot jelent, sőt, a biztosítási statisztikusok szerint még a 30-40 éves vezetők is kevésbé megbízhatóak, mint a 70 évesek. Az sem mindegy, hogy hol lakik a biztosított: London központjában többet kell fizetni, mint vidéken. A foglalkozás is fontos tényező: egy tanár például kevesebbet fizet, mint egy újságíró. A legfontosabb azonban a balesetmentes vezetésből származó bonus-kedvezmény. Ötéves balesetmentes vezetés akár hatvan százalékkal is csökkentheti a biztosításra szánt családi költségvetést. (R. Hahn Veronika cikkének adaptációja)
2. By now you should be able to answer these questions referring to Sections A and B (1) What do you call the contract between an insurer and an insured? (2) What form do you have to fill in if you want to take out insurance? (3) What does “taking out insurance” mean? (4) What service do insurance companies provide? (5) How are they able to assess risks? (6) What is Lloyd’s? How can you do business with it? (7) How is life assurance different from all other types of insurance? (8 ) How does an individual benefit from life assurance? (9) What does liability insurance provide cover for? (10) What types of liability cover can you remember? (11) What type of liability cover do doctors need? Why? (12) Do you think that people in all walks of life should have some kind of liability cover? Who do you think could do without such cover? (13) Is liability insurance expensive? What makes you think so?
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(14) Why is motor insurance important for drivers? Is it important for nondrivers as well? If yes, how? (15) What are the main types of motor insurance cover in Britain? And in Hungary? (16) What factors does the size of motor insurance premiums depend on in Britain? And in Hungary? (17) Would you have to pay a very high motor insurance premium in Britain?
WORD LIST accumulate, -d analysis (pl: analyses) assess, -ed asset assume, -d responsibility beneficiary benefit bodily injury bonus burglary claim, -ed collision compensation comprehensive cover consecutive cover (US: coverage) damage damage award/damages damage, -d defective goods detailed disrupt, -ed earn a profit fleet in return for sg insurance insure, -d insured insurer invest, -ed law of large numbers lawsuit liability insurance life assurance marine insurance
felhalmoz elemzés felbecsül eszköz, aktíva felelősséget vállal kedvezményezett juttatás testi sérülés prémium, (itt: bónusz-kedvezmény) betörés kártérítési igényt benyújt összeütközés kártérítés (kb.) casco biztosítás egymást követő fedezet kár (a bíróság által) kártérítésként megítélt összeg kárt okoz hibás áru részletes megszakít, félbeszakít nyereséget elér (tengeri v. légi) flotta cserébe vmiért biztosítás biztosít biztosított biztosító befektet, beruház a nagy számok törvénye per felelősségbiztosítás életbiztosítás tengeri szállítmánybiztosítás
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maritime peril meet a claim ordinary share ownership periodically policy policy holder premium product liability insurance proportion proposal form protect, -ed sy against sg public liability insurance rebate renew, -ed renewal result, -ed (from) robbery security settlement
tengerrel kapcsolatos kockázat kártérítési igényt kielégít törzsrészvény tulajdon rendszeresen kötvény a kötvény tulajdonosa, biztosított biztosítási díj termékfelelősség-biztosítás arány ajánlati űrlap megvéd vkit vmitől közfelelősség-biztosítás rabatt, engedmény meghosszabbít, megújít meghosszabbítás, megújítás (vmibőől) ered, származik rablás értékpapír fizetés, teljesítés, megállapodás; (itt: ítélet) source of finance finanszírozási forrás specify, -ied meghatároz take out insurance/cover biztosítást köt take over a risk kockázatot átvállal temporarily ideiglenesen terms of a contract (under the ~) szerződés feltételei (alapján) theft lopás third party cover (kb.) kötelező gépjármű biztosítás underwriter biztosító (Lloyd’s-nál) utmost good faith a legnagyobb jóhiszeműség whereas amíg
