actual total loss

In the event of an actual total loss being paid the remains or salvage will be the property of the Corporation.

(By contrast an actual total loss describes the physical destruction of a vessel or cargo.)

An actual total loss occurs where the damages or cost of repair clearly equal or exceed the value of the property.

A separately insured item will be an actual total loss when the subject matter of insurance is destroyed or where the Policyholder is irretrievably deprived of the subject matter of insurance.

If the salvage is not economically worthwhile then it should be made clear to the Policyholder when the actual total loss is paid that the remains are their property and it is up to the Policyholder to dispose of them.

Though it is impossible to obtain monetary value from the wreckage in the event of an actual total loss or constructive total loss, many insurers rely on sharing any revenue which may be obtainable from the failed satellite with the insured.

The Policyholder may claim a constructive total loss when the subject matter of insurance is reasonably abandoned to the Insurer on the account of its actual total loss appearing to be unavoidable or because it could not be preserved from such actual total loss without an expenditure that would exceed its value when recovered/repaired.