An agreement between a hull underwriter and the assured ship owner, whereby the underwriter is prepared to pay a compromised settlement on a total loss basis because, although, the estimated cost of repairs does not justify a constructive total loss, repairing the ship would be an uneconomical proposition in view of its market value and the high cost of repairing the damage. The settlement, usually, allows the assured to retain the wreck. Refer: “Compromised total loss:.