Constructive Total Loss and Notice of Abandonment - when is it too late?

In brief - Unyielding approach in assessing casualty proves risky for insurers

Marine insurers should carefully consider the implications of entering into a "battle of the experts" when a casualty occurs. In a recent UK Court of Appeal decision in The "Renos" [2018] EWCA Civ 230, the Owners were allowed more than five months after the casualty to abandon the vessel and claim a constructive total loss (CTL). This was because experts could not agree on the scope and cost of repairs to a vessel.

Critically, information provided by the Insurers' experts was able to be treated as unreliable by the Owners on the basis the Insurers' experts provided conflicting repair specifications and estimates that were, at first, unrealistically low.