[D085]

dual valuation clause

An ocean marine policy provision that applies to the hulls of older vessels. The clause values a vessel differently for total and partial losses. In the case of a total loss, the settlement amount will reflect the age and condition of the vessel. For partial losses, settlement amounts will reflect the added cost of repair and refurbishing to make a damaged vessel seaworthy. Another purpose of this type of valuation clause is to discourage incidents of intentional total losses.