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1. Actual total loss
a. Total Destruction;
b. Loss by sinking;
c. Damage rendering the thing valueless; or
d. Total deprivation of owner of possession of thing insured.
2. Constructive total loss
a. Actual loss or more than three-fourths (3/4) of the value of the object;
b. Damage reducing value by more than three-fourths (3/4) of the value of the vessel and of cargo; and
c. Expenses of shipment exceed threefourths (3/4) of value of cargo.
NOTE: In case of constructive total loss, insured may abandon the goods or vessel to the insurer and claim for whole insured value, or he may, without abandoning vessel, claim for partial actual loss.
ABANDONMENT The act of the insured by which, after a constructive total loss, he declares the
relinquishment to the insurer of his interest in the thing insured.
a. Total Destruction;
b. Loss by sinking;
c. Damage rendering the thing valueless; or
d. Total deprivation of owner of possession of thing insured.
2. Constructive total loss
a. Actual loss or more than three-fourths (3/4) of the value of the object;
b. Damage reducing value by more than three-fourths (3/4) of the value of the vessel and of cargo; and
c. Expenses of shipment exceed threefourths (3/4) of value of cargo.
NOTE: In case of constructive total loss, insured may abandon the goods or vessel to the insurer and claim for whole insured value, or he may, without abandoning vessel, claim for partial actual loss.
ABANDONMENT The act of the insured by which, after a constructive total loss, he declares the
relinquishment to the insurer of his interest in the thing insured.
