Sum insured
The agreed figure the cover is written for, and the ceiling on any payment.
Definition
The value declared for the consignment and stated on the certificate. In cargo insurance it is conventionally built from the commercial invoice value, plus the freight, plus any duty paid or payable, plus a customary uplift — most often 10% — for the incidental costs of a loss. It is also the base the premium is rated on, as a rate per 100 units of insured value.
Why it decides money
It is both what you pay for and the most you can be paid. Declaring less to save premium reduces the payout by more than it ever saves.
Related terms
- CIF plus 10%
- The customary basis of valuation: cost, insurance, freight and a tenth on top.
- Under-insurance
- Declare half the value and a partial loss pays half.
- Rate per 100
- How cargo premium is quoted: a rate applied to each 100 of insured value.
More in value and premium
InsuranceScanner is an insurance intermediary, not an insurer — see the Terms for our role. Nothing here is a personal recommendation that a particular cover, sum insured or deductible is suitable for you. Where anything on this page conflicts with the certificate, policy schedule or wording issued by an insurer, that document governs.