Bank and means of payment

Bank are organization which :

- Make and receive payment on behalf customers
- Keep money safely
- Lend customers
These functions are carried out through accounts for customers.
 The major commercial or clearing in UK are : Lloyd, National Westminster , Barclays ,
Midland*. They are called clearing banks because they are members of the Bankers Clearing
House ; the organization to which every bank remits each day, all cheques drawn on other
bank which have been receiving during the day . In return, the bank is given the cheques
drawn on it, only the balance is settled in money or by transfers in general accounts held by
the Bank of England.
The clearing banks offer different types of account because the needs of customers vary.
- Current account in which money is being constantly paid in and withdraw and the balance of
money in the account therefore frequently changes.
- Deposit account, use for savings on which interest is eared Seven days’ notice of withdrawal
is required.
- Saving account, is usually for small sums of money, saving can be withdrawn on demand, the
account earns a lower rate of interest than deposit account.
 Cheques are used for payment from current account, they are usually crossed which means
that they must be paid into a bank account. Most cheques are order chaques because they
contain the instruction: pay…. Or order; ie . the bank is instructed to pay the payee.
 Most payment by cheque are supported by cheque guarantee cards .
 A standing order is used to make regular payment for a fixed amount. A direct debit is used
for payment of irregular and/or varying made of syndicate, the personal wealth of the
underwriters can be used to meet any unpaid claims.

Formalities :
 Once a person has selected the insurance company with which he wishes to deal the company
will ask for proposal form to be completed.
 When the insurance company agreed to insure a person the policy will be drawn up . this is a
written contract which sets out precisely the terms under which the insurance company has
agreed to cover the insured. The policy includes details of:
 Risk to be covered;
 Amount of premium (payment) .
 Compensation and method of claiming compensation.
Both parties must show utmost good faith , the insured must tell the truth when completing the
proposal form, the insurance company must point out any exclusions or unusual features of the policy
Insurance depends upon a possibility; you take out a policy against a possible risk.
Assurance is the payment of a premium in return for a fixed sum which becomes payable at the state
time.

VOCABULARY

Act of God Cas de force majeur

Actuary Actuaire
All-in , all risks Tous risques
To assess Evaluer
Broker Courtier d’assurance
comprehensive Assurance tous risques
Average Avarie
Complete write-off Perte sèche