Marine losses - SS2 Commerce Past Questions and Answers - page 1

Actual Total Loss

Constructive Total Loss

Total Loss

When the insured property is physically destroyed or lost

When the cost of recovering or repairing the property exceeds its insured value

When only a portion of the property is lost or damaged

The insured property is completely destroyed or irretrievably lost

The insured property is physically present but damaged and repairable

 The loss or expense is shared proportionally by all parties involved

A loss or damage suffered by a specific party or interest

 A situation where a voluntary sacrifice or expenditure is made to save the ship, cargo, or crew from a common peril

A situation where the cost of recovering or repairing the property exceeds its insured value

General average loss refers to complete destruction, while particular average loss refers to partial damage

General average loss is irretrievable, while particular average loss is repairable

General average loss is shared by all parties, while particular average loss is borne by the affected party alone