Abandonment. Where there is a constructive total loss (see also Marine loss), the assured may either treat the loss as a partial loss or abandon the vessel to the insurer and treat the loss as-if it were an actual total loss.
The shipowners have the choice: in the former case they remain owners of the damaged vessel and are indemnified for partial loss, in the latter case underwriters are entitled to take over the damaged vessel and the owners receive the full amount for which the vessel has been insured. It is up to the underwriters to take measures to recover the damaged ship. When shipowners elect to abandon the ship, they must give notice of abandonment.
Under the Waiver clause incorporated in every policy of marine insurance, acts of the shipowners or underwriters in recovering, saving, or preserving the vessel will not be considered as a waiver or acceptance of abandonment.BLOG COMMENTS POWERED BY DISQUS