Insurance term where the cost of repairing, retrieving and forwarding the goods exceeds their insured value.
In Ocean Marine insurance, a loss which occurs when property is not completely destroyed but the cost to salvage or repair the property would exceed its value.
A claim from the insurance company that the value to repair the property exceeds the property's market value.
A partial loss where the cost of repairing the damage is greater than the value of the property after restoration.
A partial loss of sufficient degree to make the cost of repairing more than the property is worth.
When the cost of repair is more than the property or vehicle is worth, it is a Constructive Total Loss.
This condition is said to exist when the cost of repairs exceeds the actual cash value of damaged property.
Partial loss of such significance that the cost of restoring damaged property would exceed its value after restoration. For example, a car is so badly damaged by fire that repairing it would cost more than the repaired vehicle would be worth.
Damage to property which is so great that the cost of recovering and repairing the property would exceed the insured value.
A loss of sufficient amount to make the cost of salvaging or repairing the property equal to or greater than the value of the property when repaired.
An instance in which the cost of recovering and/or repairing damaged goods would, when recovered or repaired, exceeds the insured value.
The position which exists when the cost of repairing or recovering lost or damaged property plus the value of the salvage would exceed the property's value when repaired or recovered.
(Perte totale implicite or Perte réputée totale) A partial loss but where the damage is so extensive that repairs would cost as much or more than the property is worth, or the limit of insurance of the policy.
Term used when damage to property is more than the value of the property.
A partial loss but where the damage is so extensive that repairs would cost as much or more than the repaired property would be worth, or the limit of insurance.
In marine insurance, the Insured has the right to abandon the Insured property to the Insurer and claim a constructive total loss where, because of the operation of an Insured peril, (a) the Insured is deprived of the Insured property and is unlikely to recover it, or (b) an actual total loss appears to be inevitable, or (c) in the case of a vessel – the estimated costs of recovery and repair would exceed the repaired value, or (d) in the case of cargo – the estimated costs or recovery, reconditioning and forwarding to destination would exceed the repaired value (see 'Notice of Abandonment').
the loss may be considered constructive when the cost of salvage or repair for the damage occurred exceeds the insured value; in this case, the assured may go for a partial loss and retain ownership of the subject, or go for actual total loss and leave the subject to the insurer