(1) The insurable value of the goods is deemed to be the common market value and, in the absence of such value, the common value of the goods at the place of shipping at the beginning of the insurance, plus insurance costs, costs arising up until the time when the transporter takes receipt of the goods, and the final amount of freightage paid.
(2) The value determined in accordance with subsection (1) is also deemed to be the insurable value on occurrence of the insured event.
(3) Where goods are damaged on arrival at their place of delivery, their value at that place in their damaged state is deducted from the value which they would have at that place in an undamaged state. The fraction of the insurable value corresponding to the ratio between the reduction in value, and their value in their undamaged state, is deemed to be the amount of damage.