Constructive loss - Indian Laws - General

Interpretation of Constructive loss In Halsbury s Laws of England, Fourth Edition Volume 25, Reissue 2003, page 257, constructive loss has been defined as follows: Subject to any express provision in the policy, there is a constructive total loss where the subject matter insured is reasonably abandoned on account of its actual total loss appearing to be unavoidable, or because it could not be preserved from actual total loss without an expenditure which would exceed its value when the expenditure had been incurred. Whether these conditions as to constructive total loss are or are not satisfied is in each case a question of fact. In particular, there is a constructive total loss-- (1) where the assured is deprived of the possession of his ship or goods by a peril insured against, and: (a) it is unlikely that he can recover the ship or goods, as the case may be, or (b) the cost of recovering the ship or goods, as the case may be, would exceed their value when recovered; [See also M/s. Pandey Co. Builders Pvt. Ltd v. State of Bihar Anr.- 2006 (11) TMI 674 - SUPREME COURT ] - Interpretation of constructive loss contained in Section 60 is subject to any express provision in the policy. The definition of constructive total loss, therefore, as contained therein would be subject to any other clause which may be in the policy. The policy contained a clause which was not in commensurate with the said provision. We, in a case of this nature, have to give effect to the terms of insurance. [M/S. PEACOCK PLYWOOD PVT. LTD. VERSUS THE ORIENTAL INSURANCE CO. LTD.- 2006 (12) TMI 558 - SUPREME COURT]