Marine insurance

Successive losses

In Kastor Navigation Co Ltd v AGF MAT, The Kastor Too [2004] EWCA Civ 277, [2004] Lloyd’s Rep IR (forthcoming) the Court of Appeal has confirmed the first instance ruling of Tomlinson J that if the assured suffers a constructive total loss caused by an insured peril, and this is followed almost immediately by an actual total loss caused by an uninsured peril, the assured is able to recover for the constructive total loss. In reaching this conclusion the Court of Appeal analysed in detail the old authorities on the constructive total loss, abandonment, notice of abandonment and successive losses. The combined judgment of the Court, Tuckey, Rix and Neuberger LJJ, was delivered by Rix LJ. As will be seen, the Court of Appeal ruled that if there is an insured constructive total loss followed by an uninsured actual total loss, then the assured is entitled to recover for the constructive total loss and it is irrelevant that it proved impossible for him to serve a notice of abandonment.