x Your import -export enterprise has a shipment of sea transport and want to carefully understand the damage and losses to request compensation properly?
x Shippers, exporters, imports, carriers, Forwarder, ... want to know how Total Loss has influenced and impact?
X and you want to know how many types of Total loss? What is the process of claiming Total loss, is complicated?
Proship.vn with many years of experience in transporting sea goods will answer the question of Total Loss? How does Total Loss have an impact? How many types of Total Loss?
What is Total Loss? The cause of Total Loss?
Want to know what Total Loss is and what causes Total loss, update Proship content recorded below:
What is Total Loss?
Total Loss in English is a noun for all losses. The whole loss is that the insured goods are completely lost, completely metamorphic or almost completely damaged, making its inherent use value significantly lost.
Losses in international transport insurance are the damage and damage of goods insured by risks.
The cause of the whole loss
There are many causes of loss of total loss and may vary in each context and field such as:
- Natural disasters and accidents;
- Bankruptcy and asset value losing;
- Technical and fire incidents;
- Fraud and crime;
- Risks and lack of risk management;
- Technology and system incidents;
- Weapons and war conflicts;
- Environmental change;
- Security incidents and technological crimes;
- System failure and human resource incident.
How does the whole loss affect?
What is the impact and influence of Total Loss? Some of the main effects of the entire losses must include:
Total loss affect corporate finance
For businesses, the whole loss causes the loss of assets, equipment, inventories or important infrastructure. This interrupts business operations, causes loss of customers, reduces revenue and profit, even bankrupt.
Total loss affects personal finance
For individuals, the whole loss can cause an important loss of property, such as losing home, car loss or losing great savings. This can lead to difficult financial situation, affecting stability and the ability to continue life.
Total loss affects society
The whole loss causes negative social impacts, stress, anxiety and uncertainty for everyone. It may lose confidence in the insurance system, finance and risk management.
The whole loss can also cause unemployment, affecting psychological and depression for those affected.
Total loss affects economy
The whole loss may have a negative impact on the overall economy. When many individuals, businesses or organizations have all losses, leading to a delay in economic activities, reducing reliability and increasing risks.
If a large industry has a total loss may cause economic downturn and even affect the national stability of the nation.
Total loss affects psychology
The whole loss has a strong psychological impact on those affected. Full loss easily causes a sense of loss, despair, anxiety and stress. These effects can last and affect the quality of life, the psychological status of those who are lost.
Total loss affects trust and belief
The total loss of the public's and consumer confidence in the insurance system, financial markets and related organizations. This can cause insecurity and concern in the business and financial environment.
Total loss affects the environment
If the whole loss is related to natural disasters or environmental accidents, environmental impact can be very serious. The comprehensive damage to the environment is easily degraded and destroyed the ecosystem, biodiversity and natural resources.
Total loss affects development and innovation
The whole loss interrupts the development and innovation process. When a business or a project faces the whole loss, it will interrupt the research and development process, reducing the ability to create new products and services and hinder economic and social progress.
Classification of total loss losses
To avoid insurance benefits, the whole loss is divided into two categories:
Contructive Total Loss
The Constructive Total Loss is a damaged goods but has not completely lost but the cost of recovery or continues the journey too high that the insurer wants to give up the goods.
Actual Total loss (Actual Total Loss)
Actual Total loss is when the insurance object is completely destroyed, severe damage is no longer able to use such as fire, rotting, or shipwrecked ship.
The process of claiming the entire Contructive Total Loss estimate and actual Actual Total Loss
The process of claiming the entire Contructive Total Loss estimate and damage to the entire actual Actual Total Loss:
The process of claiming the entire actual damage Actual Total Loss
The process of settling complaints in reality in maritime insurance:
- Step 1: If the goods are completely damaged, it is necessary to apply for compensation with the insurance company;
- Step 2: The insurance company will investigate the complaint of the insured person;
- Step 3: After completing the investigation process and the insurance company confirms that the whole loss will pay the entire value of goods according to the provisions of the seafood insurance contract for the insured person.
The process of claiming damage to the entire constructive total loss
The process of settling complaints in the case of total losses is more complicated than the whole reality:
- Step 1: The insured person (owner/ship owner) should submit a request for compensation to the insurance company;
- Step 2: After that, they need to deliver the ownership of the insurance to the insurance party and the insurance party will take over to rescue after the sale;
- Step 3: The amount collected from the sales used to compensate for the insured.
What is Total Loss and the effects, impacts, causes of total losses, claims for compensation for losses, ... have been answered above. Any questions, please contact 0909 344 247 for answers and if you need to use all kinds of services, cheap freight methods, Proship Logistics is always ready to support you.
