Abandonment (Marine Insurance)

What is Abandonment (Marine Insurance)?

Abandonment (Marine Insurance) is Detailed in the Marine Insurance Act 1909 Sections 66-69 Abandonment is a condition precedent to a Constructive Total Loss being declared and there are a set of procedures and legal consequences surrounding the Insured giving of Notice of Abandonment to the Insurer. It should be noted that (a) the Insurer is not bound to accept the Notice of Abandonment however if the notice is properly given the Insured is not prejudiced by the fact that the Insurer did not accept the notice and (b) the Insurer may waive the requirement for notice of abandonment to be given. No notice is required if, at the time the Insured becomes aware of the loss, there is no possibility of benefit to the Insurer if notice was given.

 

source: –

Tags: