ABSTRACT
Most policies on property cover only the cof the insured subject matter. This has a number of consequences, which turn on the distinction between physical loss of insured subject matter and economic losses which result from defects in the subject matter or in the assured's rights over it. Most property policies are written on an unvalued, or indemnity, basis, so that in the event of loss of or damage to the insured subject matter the assured is entitled to recover the amount of his actual loss from the insurers. The MIA 1906 contains its own regime on the measure of indemnity, setting out rules for ships, cargo and freight. The most important difference between marine and non-marine principles is that the assured is entitled to recover the difference between the market value of a vessel or cargo at the inception of the risk and the market value immediately after the casualty.
