Multiple choice

Which of the following policies has the main feature as Agreed Value policy?

  1. Fire policy

  2. Burglary policy

  3. Marine cargo insurance

  4. Engineering policy
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Cargo policies are essentially voyage policies, i.e. they cover the subject matter from one place to another. However, the insured is required to always act with reasonable care in all circumstances within his control. The main feature of this policy is that it's an Agreed Value policy. The valuation is agreed between the insurer and the insured, and is not subject to revaluation later unless fraud is suspected. Another unique feature is that the policy is freely assignable.

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