ABSTRACT
Constructive total loss (CTL) is defined under s. 60 of the MIA 1906. Several different circumstances are listed under s. 60 and this chapter assesses each of those stated under this section. The chapter analyses the date at which the CTL is assessed, when the ship is damaged how it is calculated whether the cost of repair exceeds the value of the ship, the form and timing of notice of abandonment. Key words: deprivation of possession, recovery is unlikely, damage to ship, damage to cargo, abandonment of any hope of recovery, ATL is unavoidable, recovery is unlikely, free use and disposal of the subject matter insured, temporary suspension and frustration of voyage, expenditure exceeding the value of the subject matter insured, insured value, value when repaired, mortgagees’ interest insurance, capture, re-capture, notice of abandonment (NoA), insured value, cost of repair, place of repair, salvage charges, value of wreck, the concept of CTL, the right to claim for CTL, acceptance of NoA, rejection of NoA, where NoA is not needed, NoA by assignee – loss payee, CTL of freight, successive total losses.
