General Average Loss – loss at sea usually incurred when cargo is thrown overboard to save the ship; such a loss is borne equally by all the interests concerned in the venture

general average loss:

1. Marine underwriting. A loss at sea usually incurred when cargo is thrown overboard to save the ship; a loss due to the voluntary and intentional sacrifice of part of a venture (usually cargo) to save the rest of the venture from imminent peril.  *  Such a loss is borne equally by all the interests concerned in the venture.  See AVERAGE (3). [1]

1. See general average. [2]

1. See general average contribution. [3]

general average:

1. A contribution by all the parties in a sea adventure to make good the loss sustained by one of their number on account of sacrifices voluntary made of part of the ship or cargo to save the residue and the lives of those on board from an impending peril, or for extraordinary expenses necessarily incurred by one or more of the parties for the general benefit of all the interests embarked in the enterprise. An obligation resting upon the vessel, the cargo, and the freight, in proportion to their respective values, and upon the owners of each, in proportion to the value of their property at risk, and enforceable by resorting to a lien upon the property saved from the common peril, or by actions against the persons bound to contribute. 48 Am J1st Ship § 621.

While general average is not, eo nomine, insured against in marine policies, where it is payable in consequence of a peril insured against, the insurer is liable therefor. Peters v Warren Ins. Co. (US) 14 Pet 99, 10 L Ed 371.

In case of a general average loss, the insurer is directly liable for the whole of the insured value of the pr0perty sacrificed for the general benefit, and upon payment is subrogated to the rights of the insured for contribution.   Dickenson v Jardine (Eng) LR 3 CP 639, 14 ERC 431. [2]

general average contribution:

1. A contribution by all of the parties in a maritime venture to make good the loss suffered by one of them in saving the cargo or ships of the others or in sustaining any other extraordinary expense for the general benefit of all.
     Compare particular average.  See Jason clause. [3]


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[1]: Black’s Law Dictionary Deluxe Tenth Edition by Henry Campbell Black, Editor in Chief Bryan A. Garner. ISBN: 978-0-314-61300-4

[2]: Ballantine’s Law Dictionary with Pronunciations
Third Edition by James A. Ballantine (James Arthur 1871-1949).  Edited by William S. Anderson.  © 1969 by THE LAWYER’S CO-OPERATIVE PUBLISHING COMPANY.  Library of Congress Catalog Card No. 68-30931

[3]:  Ballantine’s Law Dictionary Legal Assistant Edition by Jack Ballantine (James Arthur 1871-1949).  Doctored by Jack G. Handler, J.D. © 1994 Delmar by Thomson Learning.  ISBN 0-8273-4874-6.


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