• International Area Studies Review
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• v.12 no.2
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• pp.277-295
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• 2008

Insurable value agreed by the parties shall be presumed specified at the time of the accident. It is nevertheless provided that where agreed value considerably exceeds certain amount evaluated at the time of insured accident, the amount shall be insurable value. It casts doubt on what constitutes such an excess in valuation in marine insurance. Because of the relatively short periods and less volatile economies, maritime insurance, with the statutory insurance value, has deemed insurable value conclusive. In other ways, the provision of default rule substitutes the amount evaluated at the time of insured accident for statutory insurance value. However, over-valuation of agreed value determined by the comparison of statutory insurance value leads to non sequitur in valued policy. Maritime insurance, in the case of over-valuation of agreed value, construes certain amount evaluated at the time of insured accident as insurable value. Accordingly, beyond the application of statutory insurance value, the amount should be considered for over-valuation of agreed value.