Marine insurance: when all interested parties contribute to save the venture, eg if a ship develops a list or is damaged

In ocean marine insurance, a concept which provides that, where a portion of a vessel or cargo is jettisoned to save the entire venture from peril at sea, the resulting loss is shared by all parties involved. The owners of property that is saved contribute in proportion to the interests suffering loss, provided the latter are free of fault in the danger and the venture ultimately is successful. (Distinct from Particular Average.)

General average is an unwritten, non-statutory, international maritime law which is universally recognized and applied. It is founded on the principle that vessel and goods are parties to the same venture and share exposure to the same perils, which may require sacrifice or the incurring of extraordinary expense on the part of one for the benefit of the whole venture.

If all parties involved benefit from a sea voyage that is saved from disaster although at the expense of sacrificing property or incurring extra costs, it seems only fair that parties should then each bear part of the expense. An example is when a cargo has to be jettisoned in order to save a vessel in danger of sinking during a storm. The cargo interests who lose out get some of their money back by calling for 'General Average' contributions from all the parties, both hull and cargo, that benefited from this action.

Intentional act or loss which is put up with to prevent the total loss or complete damage of a vessel and its cargo The master of a vessel has the authority to sacrifice property, and / or incur reasonable expenditure in case a vessel is in danger to suffer a total loss if a total loss can thus be avoided or can be expected to be prevented. Measures taken are not accepted as general average if their purpose was the sole benefit of one particular interest.

A long established rule of the sea that is universally recognized and applied. When a vessel is in danger of total loss, then the master has the right to intentionally sacrifice property and/or incur reasonable expenses in order to prevent the total loss. It is not general average if actions are taken for the sole benefit of any particular interest. Abbreviation: GA.

Abbreviation: G/A Intentional act or sacrifice which is carried out to safeguard vessel and cargo. When a vessel is in danger, the master has the right to sacrifice property and/or to incur reasonable expenditure. Measures taken for the sole benefit of any particular interest are not considered general average.

A deliberate loss of damage to goods in the face of a peril, which sacrifice is made for the preservation of the vessel and other goods. The cost of the loss is shared by the owners of the saved goods.

A principle of maritime law according to which the owners of ship and cargo share in a loss incurred voluntarily (see general average sacrifice).

See Marine Cargo Insurance.

Ancient principle of equity in which all parties in a sea adventure (ship, cargo, and freight) proportionately share losses resulting from a voluntary and successful sacrifice of part of the ship or cargo to save the whole adventure from an impending peril, or extraordinary expenses necessarily incurred for the joint benefit of ship and cargo.

A shipping industry term for a loss incurred by a sacrifice that has been made voluntarily or by an expense incurred for the sole purpose of saving a ship and its cargo in face of a common danger, e.g. jettison of cargo to lighten a ship in distress. The loss is borne proportionately by ship and cargo owners according to their respective interests in the voyage.

Damages are deliberately incurred by the master of the vessel, including jettison of some of the cargo, or incurring towing charges in order to save the ship and cargo from a threatened peril. These costs, called general average sacrifices, are proportioned among all of the parties to the marine adventure, including the owners of the cargo and the shipowner.

general indemnity made by all interested parties concerned for a maritime loss incurred voluntarily but necessarily for the safety of the remaining property when in peril

A loss that affects all cargo interests on board a vessel as well as the ship herself.

A deliberate sacrifice or expenditure incurred for the common safety of a maritime adventure. Those interests that benefit from the sacrifice or expenditure contribute rateably to make good the loss.

Loss which is the result of a sacrifice voluntarily made or an expense incurred; for the sole purpose of saving a ship and its cargo in face of a common danger (e.g. jettison of cargo to lighten a ship in distress). The loss is borne proportionately by ship and cargo owners according to their respective interests in the voyage.

Provision in maritime law where all shippers on a given voyage would reimburse the ship line in the event of vessel sinking or catastrophic damage. It also provides for the reimbursement to those shippers whose cargo was thrown overboard in order to save the vessel. Source

In ocean marine insurance, a loss which is common to all interests, such as the hull owners, the cargo owners and the receivers of the freight and charges, etc., which may arise due to a peril to the entire venture, which requires a sacrifice or expenditure for the benefit of all. An example is the stranding of the vessel wherein the vessel must engage a tug to remove her from the strand. Without the tug's assistance, all would be lost. The expenses incurred are shared pro rata based on the value of each interest, whether insured or not.

An ancient practice in international maritime law. All the shippers on a given voyage would reimburse those shippers whose cargo had to be thrown overboard in bad weather in order to save the vessel and any remaining cargo.

Loss resulting from a voluntary sacrifice of any part of the vessel or cargo, or an expenditure to safeguard the vessel and the rest of the cargo. When such a loss occurs, it is paid on a pro-rata basis by the ship owner and all cargo owners.

Loss arising through a voluntary sacrifice of any part of the ship or cargo, or an expenditure, to safeguard the ship and the rest of the cargo.

The principle in maritime law that when a sacrifice is made or an expense voluntarily incurred to preserve the rest of a venture the loss or expense should be shared among all the interests involved in proportion to their value.

In water transportation, the deliberate sacrifice of cargo to make the vessel safe for the remaining cargo. Those sharing in the spared cargo proportionately cover the loss.

A loss that must be borne partly by someone other than the owner of the goods that were lost or destroyed: for example, if it is necessary to jettison cargo to save a ship, the owners of the ship and the rest of the cargo that is saved will share in the loss of the goods that were intentionally sacrificed.

Abbreviation: G/A. Intentional act or sacrifice which is carried out to safeguard vessel and cargo. There is a general average act, when, and only when, any extraordinary sacrifice or expenditure is intentionally and reasonably made or incurred for the common safety for the purpose of preserving from peril the property involved in a common maritime adventure. Loss or damage sustained by the ship or cargo through delay, whether on the voyage or subsequently, such as demurrage, and any indirect loss whatsoever, such as loss of market, shall not be admitted as general average.→ Average Adjusters → Contributory Value → General Average Act → General Average Security → General Average Statement → Particular Average → Sacrifice → Valuation Clause → York/Antwerp Rules

in maritime law and OCEAN MARINE insurance, "a sacrifice to avert a common peril." It means losses suffered through expenses voluntarily incurred and sacrifices intentionally made by a master of a ship of a part of the ship's cargo to preserve the rest from destruction. Since they were for the benefit of all, these losses and expenses must be shared proportionately by each of the interests involved.

General Average Contribution General Order

(The law of) General average is a legal principal of maritime law according to which all parties in a sea venture proportionally share any losses resulting from a voluntary sacrifice of part of the ship or fleet to save the whole in an emergency. In the exigencies of hazards faced at sea, crewmembers often have precious little time in which to determine precisely whose cargo they are jettisoning. Thus, to avoid quarrelling that could waste valuable time, there arose the equitable practice whereby all the merchants whose cargo was on board would be called on to contribute a portion, based upon a share or percentage, to the merchant or merchants whose goods had been tossed overboard to avert imminent peril.