ABSTRACT
A constructive total loss (CTL) is a concept peculiar to marine insurance. It is an intermediate form of loss between partial and actual total loss. For a CTL of a vessel Lord Wright expressed a contrary view in Rickards v Forestal Land Timber and Railways Co Ltd. The Marine Insurance Act is silent on the question of what is the point of time to be taken in ascertaining whether there was a constructive total loss. Notice of abandonment must be given with reasonable diligence after the receipt of reliable information of the loss, but where the information is of a doubtful character the assured is entitled to a reasonable time to make inquiry. Abandonment, within the context of abandoning the property of the subject matter insured to the insurer, is not peculiar to policies of marine insurance; it is part of every contract of indemnity.
