This is a ‘Commercial’ total loss and subject to any policy provision, a constructive total loss arises where the subject matter of an insurance is reasonably abandoned to the insurer by the insured on account of its actual total loss appearing unavoidable or because it could not be preserved from actual total loss without an expenditure that would exceed its value. For example, an old automobile might suffer damage which could be repaired, but the cost of repairs would be more than the actual cash value of the automobile. Marine Insurance Act, 1963 vide Sec.60(1) provides that there is CTL when the subject matter is reasonably abandoned because either (a) actual total loss appear unavoidable, or (b) to prevent actual total loss requires expenditure exceeding the saved value. Sec. 60(2) provides that there is a CTL (i) Where the insured is deprived of the possession of ship or goods by a peril insured against, and (a) it is unlikely that he can recover the ship or goods as the case may be or (b) the cost of recovering the ship or goods would exceed their value when recovered. (ii) in the case of damage to a ship where she is so damaged by a peril insured against that the costy of repairing the damage would exceed the value of the ship when repaired (iii) in the case of damage to goods, where the cost of repairing the damage and forwarding the goods to their destination would exceed their value on arrival.