Description

Constructive total loss (CTL) is a ‘a legal device for determining the measure of indemnity’ in the form of being ‘a financial equivalent to a total loss’. It is codified under s.60 of the Marine Insurance Act 1906 (MIA 1906) whose origin goes back to losses suffered due, mainly, to the wars in the 18^th and 19^th centuries. Conflict in this period often led to the assured’s loss of possession of insured ships and goods through their capture, seizure and detainment. This then later urged the development of a new concept where the assured could claim for a total loss of the subject matter insured without proof of its actual destruction. The two common circumstances under which this new form of total loss was justified were ‘deprivation of possession’ of the subject matter insured and ‘frustration of the marine adventure’ both of which are pertinent again these days due to the war between Russia and Ukraine, but not always necessarily in the context of marine insurance. This talk will be focusing on the abovementioned circumstances and their link with CTL. It will be guided by the court cases applied CTL pre-and post- MIA 1906.

This event is part of CML’s Researchers Lunch Workshops.

For more information, please e-mail cml@nus.edu.sg