This is a system of loss settlement used when damaged goods are landed at an intermediate port, usually a port of distress, and it is found necessary to sell the goods at this port in order to prevent the goods becoming a total loss or suffering further damages. In such circumstances, the Insurers agree that the goods be sold and the insured is allowed to retain the sale proceeds less the sale charges and survey fee. The claim amount paid is the difference between the sum insured and the amount retained by the insured. Such loss settlements are effected in exceptional circumstances when goods are landed in damaged condition short of destination. This method of settlement is never adopted when loss is assessed at destination.