Marine insurance

Valued and unvalued policies

The amount recoverable by the assured under a marine, or for that matter a non-marine, policy depends upon whether the policy is valued or unvalued. In the case of a valued policy, the assured can recover the agreed value where there is a total loss, and a proportion of the agreed value (related to the degree of damage) where there is a partial loss. In the case of an unvalued policy, the assured can only recover the amount of his actual loss, subject to the financial limits of the policy. The main question before Elizabeth Gloster J in Thor Navigation Inc v Ingosstrakh Insurance, The Thor II [2005] Lloyd’s Rep IR 490 was whether a marine policy was valued or unvalued. There was a subsidiary question as to the measure of indemnity in the event that the policy was found to be unvalued.