General Average There is a General Average act when and only when any extraordinary 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. Extraordinary Sacrifice in a General Average Below are examples for an extraordinary sacrifice, though not limited to: Damage done to the engine to refloat the vessel after grounding. Jettisoning of cargo under Deck. Jettisoning of Cargo on Deck as per Custom of the trade. Slipping of Anchor and Cable … [Read more...]
Marine Insurance – Purpose, Principle, Warranties and General Average
Purpose of Marine Insurance Marine Insurance is an agreement whereby the insurer indemnified the assured in manner and extent provided, against losses incidental to marine adventure. Spreading of Risk - If a loss occurs, the insured will be put back into the same financial position as just before the loss. The insured must not profit from the loss. Aid to Security - This removes the uncertainty of a potential financial loss. Individuals and businesses are freer to expand without the need to set aside for reserves for the future. Aid to Credit - Loans are not advanced unless the … [Read more...]
