General average

General average,

Definition of General average:

  1. (in maritime law) the apportionment of financial liability for the loss arising from the jettisoning of cargo by dividing the costs among all those whose property (ship or cargo) was preserved by the action.

  2. Marine insurance provision under which damages or expenses incurred by shippers (whose cargo is exposed to a common danger) are shared among them in proportion to the value of their exposed cargo. Such damages or expenses occur by direct harm to the ship and/or to the cargo, or in a course of action to prevent initial or additional harm to them. General-average, like particular-average, is independent of the insurance cover bought for the cargo. Instead, it arises out of the contract between the cargo owner and the ship owner. Now largely replaced by relevant institute cargo clause.

How to use General average in a sentence?

  1. The second defendants are sued as guarantors of the cargos proportion of general average, but the proceedings have not been served on them.

Meaning of General average & General average Definition