Sum Insured - Marine cargo insurance - Agreed valued policy and the sum insured is as per the agreement between insurer and insured at the time of contract. Normally cost of the commodity plus Insurance + freight i.e. CIF value.
Sum Insured in Liability insurance - the liability exposure of the industrial units based on the degree of exposure, geographical spread and Additional legal costs and expenses
Methods of fixing the Sum Insured: Market Value (MV) and Reinstatement Value (RIV)
In the case of M.V., in the event of a loss, depreciation is levied on the asset depending on its age. Under this method, the insured is not paid amount sufficient to replace the property.
In the RIV method, the insurance company will pay the cost of replacement subject to ceiling of sum insured. Under this method, no depreciation is levied.
MODELEXAM® 
www.realsoftinfoplan.com