Marine cargo insurance covers risks in respect of loss or or damage to goods during transit by rail, road, sea or air. The market value of the cargo is taken to be the sum insured.
There are occasions, before reaching the port of destination, the market value of the goods at the destination port is higher than the CIF (cost, insurance and freight) and the duty value.
The 'Increased Value' insurance clause arranges insurance to cover the increased value of the cargo. The clause is attached to the policy and provides indemnity for the increased value because of the operation of any of the perils insured against.The clause is not valid if there is an increase in the market value after the arrival of the vessel at the destination port.
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