General Average Loss Clause Samples
General Average Loss this type of marine insurance loss occurs when damage is deliberately incurred in order to save a ship or its cargoes or to preserve lives from impending perils of the sea. The owners of the ship and the cargoes will bear the loss. Underwriting is the process by which an insurer offers to cover a portion or part of a risk. Underwriting is most common in marine insurance because of the amount of money involved. The person or company that offers to cover or assume a portion of a risk is called an UNDERWRITER.
General Average Loss. This is a partial loss which occurs when the ship master, for the interest of the parties, deliberately and reasonably throws overboard or jettisons some of the cargos in order to lighten the ship so as to reduce loss. The expenses will be borne by all parties concerned, e.g. during storm, some of a ship’s cargo can be jettisoned.