Increased Value (IV) - The Swedish Club (2024)

FAQs

What is increased value in marine insurance? ›

Increased Value (IV) Insurance or Hull Interest Insurance is a property insurance that insures the full value, or mortgage value, of a vessel and/or the additional costs of replacing a vessel if it is a total loss.

Hull and Machinery (H&M) insurance protects one of the shipowner's most important assets: the vessel itself. There are a number of sub-classes under the H&M banner, such as Increased Value (IV), Loss of Hire and War. North is able to offer protection in respect of all of these risks and more.

Separate insurances against total loss will cover the Assured's economic interest in the increased capital value of the ship (hull interest/increased value) and in the long-term freight interests of the ship. The hull interest insurance will typically cover excess collision liability.

What is Marine Hull and Machinery Insurance? Marine Hull and Machinery Insurance protects the insured vessel or fleet against physical damage caused by a peril of the sea or other covered perils while the vessel is in transit over water.

Increased Value Insurance insures the full value of a vessel and/or the additional costs of replacing a vessel if it becomes an actual total loss or constructive total loss.

General Average is a principle of maritime law that essentially establishes that all sea cargo stakeholders (owner, shipper, etc.) evenly share any damage or losses that may occur as a result of voluntary sacrifice of part of the vessel or cargo to save the whole in an emergency.

Our Hull and Machinery (H&M) insurance covers physical loss of or damage to the hull and the machinery onboard.

Increased value and excess liability (IVEL) clauses work like umbrella policies. They provide excess coverage for the same losses covered by an underlining policy they are written to go with. The underlining policy must pay up to its limit before the IVEL pays anything at all.

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Exclusions of Marine Hull Insurance

Routine wear and tear of the vessel that comes with regular usage and old age. Intentional damage to the vessel or its machinery/equipment. Damages sustained from acts of war or terrorism. Radioactive contamination and damage from nuclear activity.

What are the largest marine insurance claims? ›

Morningstar DBRS analysts said in a Wednesday note that insured losses could total between $2 billion and $4 billion, depending on the length of time that the port is blocked. Such a figure would surpass the current highest amount, which was paid out from the capsizing of the Costa Concordia cruise ship in 2012.

Basic principles of marine insurance include utmost good faith, indemnity, insurable interest, proximate cause, contribution and subrogation.

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.

Hull coverage is normally written on a valued basis, with the value of the aircraft determined at policy inception and the amount listed in the declarations. If the aircraft incurs a total loss, the insurer pays the scheduled value less the applicable deductible.

Is Hull and Machinery insurance compulsory? The short answer is “No.” But just because commercial hull and machinery insurance is optional, that doesn't mean you shouldn't get it.

A valued marine policy is a type of insurance coverage that places a specific value on marine property prior to a claim being made. In the event of a loss, a valued marine policy will pay a specified, pre-determined amount.

Agreed value refers to the price/ value of your vessel that has been agreed between you and your insurer. This value will be reviewed every time you renew your insurance.

(3) In insurance on goods or merchandise, the insurable value is the prime cost of the property insured, plus the expenses of and incidental to shipping and the charges of insurance upon the whole.

Salvage value in insurance is the amount of money the insurance providers get compensated after selling the parts of a disrupted vessel or goods present in it to an interested buyer. Once you understand the basic elements of marine insurance claim calculation, you can comprehend the calculation of salvage charges.