Which term describes the act of relinquishing an insured item in marine insurance due to loss?

The term that describes the act of relinquishing an insured item in marine insurance due to loss is abandonment. In marine insurance, when a vessel or cargo suffers a substantial loss, the insured party may choose to abandon the property to the insurer. This process allows them to claim the full value of the lost item instead of dealing with the remaining damaged property.

Abandonment is a specific legal concept in marine insurance that arises when the loss is so significant that it is not economically feasible for the insured to keep the item. By abandoning the property, the insured relinquishes all rights to the damaged or lost item and receives compensation as if the loss were total. This is often a strategic decision to avoid further losses from the remaining item or cargo.

The other terms do not accurately capture this specific nuance in marine insurance. Forfeiture generally refers to the loss of rights or property as a penalty for failing to comply with certain obligations, while nullification signifies the act of making something void or invalid, and discharge typically refers to the release from obligations, rather than the specific act of relinquishing an insured item.