Increased Value Clause in Marine Inland Transit Insurance

Traditional marine insurance policies estimate the cost of coverage on the basis of the market value. It means if a vessel is destroyed, the insured shall be entitled to receive the market value of the ship. However, there are several other expenses that are required to be met by the ship's owner. For example, the insured is expected to bear the sundries cost and office expenses in order to replace the ship with a new one. Therefore, the insurer is required to understand the need for increased value in marine inland transit insurance.