Report No. 21
General.-This deals with partial and total losses.
Analysis of losses.-The following classification of losses will explain the scheme of the Act-
Importance of the distinction.-The classification of losses into total and partial is important for this reason, that only a loss which has been insured can be recovered; and each policy provides how far a total loss will be recoverable and how far a partial loss will be recoverable. Further, the amount to be recovered would differ in each case; contrast section 68 on the one hand with sections 69 to 71 on the other.
Meaning of "total" loss and "partial" loss.-Total loss as such has not been defined in the Act. Its species, namely actual loss and constructive loss have, however, been explained.
So far as partial loss is concerned, section 56(1) provides that any loss other than a total loss is a partial loss. In addition to this general provision, section 56(4), section 56(5), etc. deal with partial losses in some aspects thereof. Where a partial loss is followed by a total loss before the partial loss is made good, the assured can recover only in respect of total loss.2
1. See also notes under section 64, English Act-clause 65.
2. Section 77(2) of the English Act-clause 78(2).