actual total loss

(insurance) An insurance loss when goods are destroyed, when the assured is irretrievably deprived of their possession, or when the goods arrive so damaged as to cease to be a thing of the kind insured. Examples of this last, which is spoken of as a “loss of specie,” are cement arriving as rock or textiles as rags.
Adjustment of actual total losses usually involves little difficulty. The policy being a valued one, payment for total loss is in the full amount of the policy. Disasters likely to give rise to total loss include fire, sinking, or stranding of the vessel, collision, and loss overboard in the course of loading or discharge. See total loss, constructive total loss.

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