Increased Value Insurance
Cover bought on top of a primary cargo or hull policy, and how Institute Cargo Clauses clause 14 shares a loss between the policies.
Increased value insurance is cover bought on top of a primary policy when the goods or the ship are worth more than the primary sum insured. For cargo, Institute Cargo Clauses 1/1/09 clause 14 deems the agreed value increased to the total of the primary and all increased value insurances and shares each loss in proportion to the sums insured.
The full article will cover buyers topping up a seller’s 110% CIF cover, rising markets and resales afloat, the hull increased value market, anticipated profit cover, and the German DTV-Gueter treatment of imaginary profit and Mehrwert. The cargo insured value article covers how this topic affects the sum insured on a cargo policy.