difference between actual total loss and constructive total loss
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Actual total oss is when the property is fully damaged, 100% damaged.
Constructive total loss is when the parts of property are damaged for more than 75%, then it is deemed to be constructive total loss.
For eg. In case of Motor Insurance, if there is actual total loss, you are being paid full IDV (Insured’s declared value) - wreck value. IDV is paid because there is no chance of any repair. And Constructive total loss is when the cost of repair of damaged car is more than 75% if IDV, then one is being paid full IDV.
Constructive total loss is when the parts of property are damaged for more than 75%, then it is deemed to be constructive total loss.
For eg. In case of Motor Insurance, if there is actual total loss, you are being paid full IDV (Insured’s declared value) - wreck value. IDV is paid because there is no chance of any repair. And Constructive total loss is when the cost of repair of damaged car is more than 75% if IDV, then one is being paid full IDV.
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