Marine Insurance – Increased Value Policy is a companion cover for importers whose cargo policy is based on CIF (Cost, Insurance, Freight) value. If market prices for your goods rise between shipment and arrival in India, your CIF-based cargo policy may settle a claim at a figure well below what those goods are now actually worth. Increased Value Policy specifically targets this gap — the difference between CIF cost and genuine market value at arrival.
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"The policy is designed to cover the increase in market value of cargo which is more than the cost of insurance + the value of Custom Duty on the date of arrival of goods in India." Increased Value Policy addresses a gap distinct from Duty Insurance Policy: rather than recovering customs duty paid on damaged goods, it protects against your cargo simply being worth more on arrival than your CIF-based policy reflects.
the insurer's own detailed product page for Increased Value Policy did not yield specific benefit wording through standard search and retrieval — only the insurer's product listing confirming the product's existence and its grouping alongside Duty Insurance Policy under commercial risk insurance. The detailed mechanic described on this page (75% settlement basis, 100% CIF cap, same premium rate as cargo policy, statutory authority verification) is drawn from 's dedicated description of this product category, which is standard across Indian marine insurers offering this cover. the insurer's exact MIVP terms, sum insured calculation, and premium should be confirmed directly with Probitas before purchase.
International shipping can take weeks. Commodity and goods prices can rise meaningfully in that window — your CIF-based cargo policy doesn't automatically adjust for this.
GapIf your goods are damaged after a market price rise, your cargo policy claim is still settled against CIF cost — the difference between that figure and current market value is a real, uncovered loss without this companion policy.
Exposure"This increase in value must be established by appropriate statutory authority" — confirmed, industry-standard mechanic. You can't simply assert that prices rose; the increase needs official verification.
Verification Required"The Increased Value Policy will always be settled on 75% basis" — confirmed, industry-standard mechanic. Even where a market increase is established, the policy doesn't indemnify 100% of that increase.
Partial Indemnity"The policy is not granted for more than 100% of CIF value of the cargo" — confirmed, industry-standard mechanic. There's a hard ceiling on how much Increased Value cover can be arranged, expressed relative to your original CIF figure.
CapUnlike Duty Insurance Policy (typically cheaper), Increased Value Policy's premium rate matches your underlying cargo policy rate — reflecting that it's insuring a comparable risk, just on the increased value tranche.
Pricing PatternIndustry-Standard Mechanic, Cross-Referenced with General Increased Value Insurance Principles
It's easy to confuse Increased Value Policy with Duty Insurance Policy since both are described using "increased value" language and both are companion covers to your main cargo policy. The key difference: Duty Insurance Policy addresses customs duty paid on damaged goods (a cost you've definitely incurred and definitely can't get refunded). Increased Value Policy addresses market price appreciation (a value increase that may or may not have happened, and must be officially verified). See the dedicated comparison section below.
Cross-Referencing the insurer's Duty Insurance Policy & Industry-Standard Increased Value Policy Mechanics
Both are companion covers for importers, both reference "increased value," and both require your underlying cargo policy claim to be admitted first — but they protect against genuinely different risks.
Market price risk
Customs duty risk
Industry-Standard Increased Value Policy Eligibility
| Criterion | MIVP Terms |
|---|---|
| Pre-condition | Must have an existing cargo insurance policy on CIF value — Increased Value Policy is a companion cover, not standalone |
| Eligible buyer | Importer bringing goods into India under a CIF-based cargo policy |
| Verification requirement | Claimed market value increase must be established by an appropriate statutory authority |
| Sum insured cap | Not granted for more than 100% of CIF value of the cargo |
| Settlement basis | Always settled on a 75% basis |
Industry-Standard Increased Value Policy Mechanic
"The policy is designed to cover the increase in market value of cargo which is more than the cost of insurance + the value of Custom Duty on the date of arrival of goods in India." — confirmed, industry-standard mechanic. The exposure being covered is the gap between original cost and the higher figure at arrival.
Core Benefit"The sum insured should be the difference of value at the market and the cost of insurance + the value of Custom Duty on the date of arrival of goods." — confirmed, industry-standard mechanic. Not an arbitrary figure — a calculated differential.
Calculation"This increase in value must be established by appropriate statutory authority" — confirmed, industry-standard mechanic. The exact authority and process for this confirmation isn't detailed in sources used for this page — confirm with Probitas for your specific goods category.
Verification GateConsistent with the pattern seen across the insurer's other companion marine products (e.g. Duty Insurance Policy), Increased Value Policy's terms of cover are expected to track your underlying cargo policy's terms and exclusions — confirm this alignment specifically with Probitas.
Expected PatternIndustry-Standard Increased Value Policy Mechanic
| Element | Confirmed Mechanic |
|---|---|
| Valuation basis | Not an agreed value policy |
| Sum insured calculation | Difference between market value and (cost of insurance + customs duty value), as of date of arrival |
| Maximum sum insured | Capped at 100% of CIF value of the cargo |
| Settlement percentage | Always 75% — even where a market increase is officially established |
| Premium rate | Same rate as the underlying cargo policy |
| Verification | Market increase must be established by appropriate statutory authority before being relied on |
Suppose your CIF cost plus customs duty value at arrival totals ₹50 lakh, and the officially-established market value of the same goods at arrival is ₹65 lakh — a ₹15 lakh increase. Increased Value Policy's sum insured would be based on that ₹15 lakh differential (subject to the 100%-of-CIF cap), and if a covered loss occurs, settlement would be on a 75% basis of the applicable established increase — not the full ₹15 lakh. This is illustrative of the general mechanic, not a confirmed the insurer-specific example.
Industry-Standard Pattern, Consistent with Duty Insurance Policy's Approach — Confirm the insurer's Exact MIVP Wording
Specific MIVP exclusion wording from the insurer wasn't independently confirmed for this page. Based on the pattern the insurer applies to its closely related Duty Insurance Policy, and general principles of companion marine cover, the following exclusions are reasonably expected to apply — confirm exact wording with Probitas.
Consistent with Duty Insurance Policy's confirmed structure, a claim under Increased Value Policy is unlikely to proceed if the corresponding claim under your underlying cargo policy is not itself admitted.
Any claimed increase in value that hasn't been established by appropriate statutory authority would not be expected to support a valid claim under this policy.
Following the pattern confirmed for Duty Insurance Policy ("exclusions under Duty policy shall be in the line with cargo policy"), Increased Value Policy's exclusions are likely to mirror your underlying cargo policy's exclusions.
As with comparable companion policies, losses occurring before the relevant increased-value risk attaches (e.g. before arrival, or before duty/market value is established) would reasonably be excluded.
Please request the insurer's complete, MIVP-specific exclusion wording from Probitas before finalising your policy — the above is a reasonable, pattern-based expectation rather than confirmed the insurer text for this specific product.
Standard Marine Cargo Claims Process, Cross-Referenced with Duty Insurance Policy's Approach
As with Duty Insurance Policy, your underlying marine cargo claim for the damaged goods should be properly filed and accepted before an Increased Value claim can be pursued.
Secure official documentation establishing the increased market value at the relevant date — this verification is a precondition for the claim, not an optional supporting document.
Document the calculation: market value minus (CIF cost + customs duty value) as of the date of arrival — this is the figure the claim will be assessed against.
With your admitted cargo claim, statutory verification, and calculated differential in hand, submit your Increased Value Policy claim — settlement will be on the confirmed 75% basis, subject to the 100%-of-CIF cap.
Call Probitas at 022 4302 0000 for the insurer's exact MIVP claim documentation checklist and the specific statutory authority/process the insurer accepts for establishing a market value increase — this verification step is central to the claim and worth confirming well before you need it.
Marine Insurance – Increased Value Policy — Frequently Asked Questions
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By submitting you agree to our Privacy Policy and Terms & Conditions. Marine Insurance – Increased Value Policy (MIVP)· IRDAI Licensed. A companion policy to an existing CIF-based marine cargo policy, covering the increase in market value of cargo above the cost of insurance plus customs duty value, as established at the date of arrival. Increase in value must be established by appropriate statutory authority. Settled on a 75% basis; sum insured not granted for more than 100% of CIF value of the cargo. Premium rate matches the underlying cargo policy. Claims dependent on the corresponding cargo policy claim being admitted. All terms per the insurer's MIVP policy document; this page draws on industry-standard descriptions of how Increased Value Policy generally operates where the insurer's own detailed product wording was not independently available — confirm exact eligibility, sum insured calculation, statutory verification process, and premium directly with Probitas/the insurer before purchase. Probitas Insurance Brokers Pvt. Ltd.· IRDAI Lic. No. 528.