Answer
A – As per IHC more than 80% damage is const total loss.
Actual Total Loss | Constructive Total Loss |
There is an ATL when the shipowner cannot physically locate or use his ship. When completely destroyed and totally deformed compared to the time when it was initially insured. e.g- Vessel sunk at high seas, vessel burnt down to ashes in a fire. | A CTL occurs when the cost of repair or retrieval of subject matter/ship is more than the cost of the ship itself. A notice of abandonment is given by the owner to the insurer. The insurer pays to the shipowner and recovers as much as possible from the remains of the property including freight, value of ship etc. e.g- A ship aground and cost of recovery is too high like Costa Concordia. |