Interpretation totally lost

...Total loss is when the subject matter of insurance is catastrophically damaged and no longer retains its shape, such as when a building is completely burned down by fire, but also when it is altered to the extent that it cannot be used for its original purpose (such as when grain rots due to flooding in a shipwreck) or when it leaves the owner's possession and there is no prospect of recovery (such as when a ship sinks into the deep sea). These are total losses in the narrow sense and are generally called absolute total losses or actual total losses, but there are also cases where the subject matter has not yet actually been lost but its occurrence is unavoidable, or when repair costs have increased and it is considered to be economically total loss, which are called presumed total losses or interpreted total losses and are included in the broad sense of total loss. The distinction between absolute total loss and presumed total loss was originally a system in British marine insurance, but in Japan, Article 833 of the Commercial Code also provides a system of insurance commission (commission) in cases of missing or irreparable ship in marine insurance, which allows the insurer to commission all rights he has regarding the subject matter of insurance to the insurance company and request total loss processing. …

*Some of the terminology explanations that refer to "interpretation total loss" are listed below.

Source | Heibonsha World Encyclopedia 2nd Edition | Information

…　全損は保険の目的が壊滅的な損傷を受け形状をとどめなくなった場合，たとえば火災による建物の全焼などが典型的であるが，本来の用途に供せられない程度に変質してしまった場合(海難事故で浸水のため穀物が腐敗したような例)や所有主の占有を離れ回収の見込みが立たない場合(船舶の深海への沈没)も全損に当たる。これらは狭義の全損で一般的に絶対全損または現実全損とよばれるが，このほかにまだ現実に滅失してはいないがその発生が避けがたい場合や修繕費がかさんで経済的に全損とみなされる場合があり，これらは推定全損または解釈全損とよばれ広義の全損に含まれる。絶対全損･推定全損の区分は本来イギリスの海上保険の制度であるが，日本でも商法833条で海上保険における船舶の行方不明や修繕不能などの場合に保険委付という制度(委付)を設け，保険の目的について有するいっさいの権利を保険会社にゆだねて全損処理を請求することができる，としている。…

※「解釈全損」について言及している用語解説の一部を掲載しています。

出典｜株式会社平凡社世界大百科事典 第２版について | 情報