🔍 Key Concepts

• Meaning of actual total loss vs constructive total loss in marine insurance • Difference between particular average and general average and when each applies • Significance of a vessel sinking before reaching dry dock (can it still be repaired or used?)

💭 Think About

• Ask yourself: if the vessel sinks enroute and cannot complete the voyage, is it more like a partial damage situation or a total loss situation? • Consider whether this loss was shared for the common safety of ship and cargo, or whether it was a loss falling on one interest only. • Think about whether the vessel is physically gone or so damaged that repairing it would not be economically reasonable.

✅ Before You Answer

• Clarify in your mind which term applies when property is actually destroyed or irretrievably lost. • Clarify which term applies when repair is technically possible but not economically sensible. • Verify that general average always involves a deliberate sacrifice or expenditure for the common safety, not just an accidental sinking.