Oracle Assets uses three methods to calculate the insurance value of an asset:
Value as New - the base insurance value of the asset, based on acquisition/production costs. This value can be indexed annually to give a current insurance value. It can also incorporate the indexed value of transactions that affect the asset value.
Market Value - the current market value of the asset. Oracle Assets automatically calculates the current value from the net book value of the asset, incorporating indexation factors and the indexed value of any transactions that affect the asset value.
Manual Value - you can manually enter an insurance value for an asset, usually in agreement with the insurer. With this calculation method you can also manually enter updates to the asset insurance value. Oracle Assets only updates the current insurance value automatically if you enter an optional maintenance year for the asset.
If an asset is partially retired, the insurance calculation process reduces the insurance value of the asset in the same proportion as the current cost is reduced for the partial retirement.
Oracle Assets provides two reports for reviewing asset insurance information. The Asset Insurance Data report lists all insurance policy data for an asset. The Asset Insurance Value report lists insurance values, current insurance amounts, and a calculation of the insurance coverage.