Multiple choice

Which of the following is not an example of actual total loss?

  1. Sinking of a ship

  2. Stealing of cargo by enemy and destructing it completely

  3. Stranding of ship by dashing against rock

  4. Burning of ship to ashes

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

It is not an example of actual total loss, but constructive total loss. When the ship is stranded by dashing against rock, the ship is not wholly destroyed that is the ship can be recovered, but the cost of repairs or recovery is greater than the value of the ship saved. In actual loss we cannot recover the ship or the property. 

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