Encyclopedia

Abandon


1. In the event that the property is insured against loss, the policyholder or the interested party may renounce their rights to the insured property (abandonment) and receive the entire insurance sum in the following cases:

1) disappearance of the vessel;

2) destruction of the vessel and/or cargo (actual total loss);

3) economic unfeasibility of restoring or repairing the vessel (constructive total loss of the vessel);

4) economic unfeasibility of removing damage to the vessel or delivering the cargo to the destination port;

5) capture of the vessel or cargo insured against such risk, if the capture lasts for more than six months.

In these cases, the insurer acquires:

all rights to the insured property in the case of insurance at full value;

rights to a share of the insured property proportionally to the ratio of the insurance sum to the insured value in the case of insurance not at full value.

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