Section 346: Total loss

(1)
Where there is a total loss of a vessel, the claimant shall be entitled to damages equal to the cost of purchasing a similar vessel in the market at the date of the collision.
(2)
Where no similar vessel is available, the claimant shall be entitled to recover as damages the value of the vessel at the date of the collision calculated by reference to the type, age, condition, nature of operation of the vessel and any other relevant factors.
(3)
The damages recoverable in the event of a total loss shall include-
(a)
reimbursement of salvage, general average and other charges and expenses reasonably incurred as a result of the collision;
(b)
reimbursement of sums for which the Claimant has become legally liable and has paid to third parties in respect of such liability, arising out of the collision by reason of contractual, statutory or other legal obligations; and
(c)
reimbursement for the net freight lost and the value of bunkers and ship's gear lost as a result of the collision and not included in the value of the vessel ascertained in accordance with this section.
(4)
Subject to reimbursement for any claim for loss of freight under paragraph (c) of subsection (2) of this section, compensation for the loss of use of the vessel for the period reasonably necessary to find a replacement whether the vessel is actually replaced or not and such compensation shall be calculated in accordance with the provisions of section 348 less any interest which the claimant may be entitled to receive in respect of the said period.