What is a Constructive Total Loss in Marine Insurance?

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Asked on May 30, 2021
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Constructive Total Loss or CTL occurs when the subject matter insured is reasonably abandonment on account of Actual Total Loss appearing to be unavoidable; or

1. The subject matter can’t be preserved back from a stage of ATL without an expenditure that will prove quite a loss.
2. Cost of repairing the ship from a peril state will be more than it’s actual cost when repaired.
3. Notice of abandonment to be given.

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Posted by marinetales
Answered on May 30, 2021