INCREASED VALUE INSURANCE

Increased Value cover protects the shipowner against any difference between the insured value of the vessel and the market value of the vessel.

Ship values fluctuate during the policy year.  If values fall, the assured still has sufficient protection in his H&M policy; but if they rise, the assured will not receive sufficient protection for a total loss under his h&m policy to pay for replacement vessel.  To provide adequate cover in this respect the assured my wish to protect himself with an increased value insurance as a hedge against inflation and, because it is on a Total Loss Only basis, the premium payable for the IV (Increased Value) policy is lower than would be the case were the insured value under the H&M policy to be increased.