In brief - Insured must give up possession of the property to
the insurer
The marine insurance market establishes loss that is not actual
total loss by defining it as constructive total loss. However,
shipowners who wish to make this type of claim must give their
insurers notice of unconditional abandonment and give up possession
to the insurer or risk having it treated as a partial loss.
Costa Concordia accepted as a constructive total loss
Despite significant improvements in navigational and sonar
technology since the days of the Titanic, ships still run
aground or are badly damaged by underwater obstacles.
In 2012, the cruise ship Costa Concordia struck an
underwater rock off the coast of Italy, capsized and sank costing
the lives of 32 people. She was accepted as a constructive total
loss with her salvage being one of the largest and most expensive
operations in history.
