Constructive Total Loss
There are differences between the Plan and ITCH and English law in relation to terminology, trigger and process.
Under the Plan the Assured may claim for a total loss when the vessel is “condemnable” as defined in Clause 11-3. This means when the cost of repairs exceeds 80% of the insured hull value or the market value, whichever is the higher. Whether the trigger is satisfied must be judged once the vessel has been salvaged and is in a position of safety. There are no formal rules concerning notice of abandonment corresponding to these in MIA 1906.
Under ITCH the trigger for claiming a CTL is that the cost of future salvage and repairs must exceed the insured value, see MIA Section 60 and ITCH Clause 19.