What is the legal term used when a ship owner gives over a severely damaged ship to the insurer?

The legal term that applies when a ship owner surrenders a severely damaged ship to the insurer is abandonment. In maritime insurance, abandonment occurs when the insured party relinquishes their rights to the damaged property (in this case, the ship) to the insurer, typically because the damage is substantial enough that the vessel is deemed a total loss. This action allows the insurer to take possession of the ship, and in return, the ship owner often receives a compensation payment based on the value insured.

Abandonment is a critical concept in marine insurance as it enables the ship owner to effectively manage their risk by offloading the responsibilities and costs associated with the damaged vessel. Once abandonment is recognized by the insurer, it can process claims according to the terms of the insurance policy, taking into account the specifics of the incident leading to the loss.

The remaining options do not accurately reflect this legal process: subrogation refers to the insurer's right to pursue a third party responsible for the loss of the ship after they have compensated the ship owner; transfer of ownership is a broader term that does not specifically encompass the scenario of surrendering a damaged ship under an insurance policy; and liability pertains to the legal responsibilities and obligations that may arise from actions or inactions, not