Marine losses - SS2 Commerce Past Questions and Answers - page 1
What is the term used for a situation where the insured property is completely destroyed or irretrievably lost?
Actual Total Loss
Constructive Total Loss
Total Loss
When does constructive total loss occur?
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
What is the primary characteristic of partial loss?
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
What does general average loss refer to?
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
What is the key difference between general average loss and particular average loss?
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
Define actual total loss in marine insurance.
What does constructive total loss mean in marine insurance?