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Constructive delivery

Physical delivery of an insurance policy either to the insured or to the insurance agent of the applicant.
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Intentionally relinquishing control over a policy and turning it over to someone acting for the policy owner such as when an insurer mails the policy to its own agent for delivery to the policy owner. Legally, an insurance policy is considered delivered when mailed or turned over the policy owner or someone acting on his behalf.

Constructive Total Loss

(01) A partial loss of sufficient degree to make the cost of repairing the damaged property more than the property is worth. 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. (02) A loss of sufficient amount to make the cost of salvaging or repairing the property equal to or greater than the value of the property when repaired. (03) This is a ‘Commercial’ total loss and arises when cargo is damaged and the cost of repairing the damage and forwarding the goods to their destination exceeds their value on arrival at destination. The insured can ‘abandon’ the goods to the Insurers and claim on the basis of total loss. (04) Sometimes the subject matter of insurance is safe and intact but its recovery is impossible and/or to the cost of recovery incurred would cost more than the value of the insured property at risk. Like a car may fallen in a deep valley and to recover or towing of the same is impossible. Hence the insurer would deem the loss to be total and settle as such. (05) Section 60 of the MIA 1963 provides that the assured may abandon the ship to the underwriters and claim a CTL where: (i) The assured is deprived of the possession of his ship and the estimated cost of recovering it would exceed its saved value when recovered, or (ii) The ship is damaged and the estimated cost of repairing it would exceed its repaired value. It follows that if the cost of recovery/repair does not exceed the insured value of the vessel, the assured has no option but to claim reasonable cost of repairs or awaits the expiry of the policy and claim a depreciation allowance in respect of the unrepaired damage. Breakup value of the vessel or wreck is not to be used in the calculation.
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UK: The position which exists when a marine insured abandons the subject-matter to the insurer either because it is an actual total loss or the cost of repairing or recovering the property would exceed the property’s value when repaired or recovered. The total loss is commercial rather than actual. See ABANDONMENT; CONSTRUCTIVE TOTAL LOSS CLAUSE.
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This condition is said to exist when the cost of repairs exceeds the actual cash value of damaged property.
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UK: The position which exists when a marine insured abandons the subject-matter to the insurer either because it is an actual total loss or the cost of repairing or recovering the property would exceed the property’s value when repaired or recovered. The total loss is commercial rather than actual. See ABANDONMENT; CONSTRUCTIVE TOTAL LOSS CLAUSE.
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This condition is said to exist when the cost of repairs exceeds the actual cash value of damaged property.

Constructive Total Loss Clause

1. Institute Cargo Clauses 1/1/82 provide that no constructive total loss claim will be recoverable unless an actual total loss appears unavoidable, or because costs of recovering the property and forwarding it to its destination would exceed its value on arrival. 2. International Hull Clauses 01/11/02 permits the insured to claim a constructive total loss if the repair costs exceed 80 per cent of the repaired value, i.e. insured value, of the property. This makes it easier for the insured to establish a constructive total loss but nothing obliges the insurer to accept the insured’s notice of abandonment. See ABANDONMENT.

Consul

A Government official residing in a foreign country, charged with representing the interests of his or her country and its nationals.

Consular Invoice

A document required by some foreign countries, describing a shipment of goods and showing information such as the consignor, consignee, the value of the shipment. Certified by a consular official of the foreign country, it is used by the country’s customs officials to verify the value, quantity and nature of the shipment.