There is an actual total loss where: the subject matter of insurance is completely destroyed it ceases to be a thing of the kind insured; or the insured is irretrievably deprived of it. An actual total loss is a term most commonly used in motor insurance. It would be used when a vehicle has been damaged beyond repair or when a vehicle has been stolen and not recovered. So actual total loss is where the insured risk no longer exists due to damage, theft, loss etc.
An actual total loss occurs when (1) the insured property is completely destroyed or (2) the Assured is irretrievably deprived of the insured property or (3) cargo changes in character so that it is no longer the thing that was insured or (4) a ship is posted "missing" at Lloyd's, in which case both the ship and its cargo are deemed to be an actual total loss.
It is a loss where the goods are completely lost and become irrecoverable.
In marine insurance, a loss where nothing remains of the insured merchandise or where the merchandise is so badly damaged that it is unsalvageable.
There is an actual total loss (a) where the subject matter of insurance is completely destroyed; (b) where it ceases to be a thing of the kind insured; or (c) where the insured is irretrievably deprived of it.
An actual total loss of a property is said to take place when 1. The insured is irretrievably deprived of the subject matter insured 2. The subject matter is so damaged by an insured peril as to cease to be a thing of its kind-‘loss of specie' 3. In so far as it relates to a vessel and/or cargo thereon, the vessel is declared as missing.