This term derives from section 57 of the Marine Insurance Act 1906 (MIA) and refers to situations in marine insurance where –
(a) the subject matter of the insurance is destroyed;
(b) the subject matter of the insurance is so damaged as to be no longer be capable of still being described as the thing insured; or
(c) the insured is deprived of the subject matter of the insurance forever.
Section 58 of the MIA adds that where there is no news of a missing ship then after a reasonable period an actual loss may be presumed.
