Total Loss Policy

Provides for the payment of a pre-agreed sum only in the event of a claim under the Hull All Risks policy being settled on the basis of an actual Total Loss (TL) or Constructive Total Loss (CTL). It does not apply if the basis of the settlement is a partial loss, cash in lieu of repairs or an Arranged Total Loss (ATL), where it is agreed that the Hull claims will be settled on the basis of a total loss when, in fact, a TL/CTL has not occurred. The intention of this coverage is to provide some protection for the costs incurred in the event of a total loss, including finance settlement shortfalls incurred as a consequence of the strengthening of the SA Rand over the past few years, where the capital amount outstanding may be significantly more than the actual current market value of the Aircraft.