An adjuster's note on constructive total loss
31 August 2016
This was a first instance trial in which the underwriters of the “Renos” attempted to defend a claim by the assured for constructive total loss of the vessel following significant damage caused by a fire in the engine room in Suez in August 2012. Notice of abandonment was tendered in February 2013. From an adjusting perspective, it raises some interesting points concerning which costs should be included in the assessment of a claim for constructive total loss. We also take the opportunity to note some of the differences in approach to claims for CTLs between the conditions commonly used in the market.