CONTESTATION IN GENERAL AVERAGE
The principle of general average has been the subject of considerable dissatisfaction in recent years for six main reasons:-
1) Exoneration of carriers for faults of the crew--
Hague rules, Hague/Visby rules, York-antwerp rules say that carrier should be exempted from liability for their own negligence. However same rules say cargo owners/shippers are responsible for their faults and fault of their employees. This causes considerable ill feeling.
2) The interpretation rule--
The second complaint regarding general average arises from interpretation rule, which gives the numbered rules precedence over the lettered rules.
3) Emergence of marine insurance--
The third complain regarding general average has arisen because of the emergence of insurance and marine insurance, which has made general average redundant. In fact, because of the risk involved in general average, all parties now insure against responsibility for general average contribution.
4) Expense and delay in general average adjustment --
The fourth complain arises from the fact that the general average adjustment is expensive and is often so time consuming that it must be commenced before the right in law to contribution has been decided.
5) Contribution collection problem --
A fifth problem arise from the fact that in general average the money is collected after the event, as opposed to insurance, where premium is paid in advance. Many difficulties are encountered in obtaining general average bonds, while collecting of contribution from cargo interests is often made difficult in certain countries due to exchange control regulation.
6) Small general average ---
Lastly, unless the general average claim is very large, adjusters find adjustment quite innumerate.
1) Exoneration of carriers for faults of the crew--
Hague rules, Hague/Visby rules, York-antwerp rules say that carrier should be exempted from liability for their own negligence. However same rules say cargo owners/shippers are responsible for their faults and fault of their employees. This causes considerable ill feeling.
2) The interpretation rule--
The second complaint regarding general average arises from interpretation rule, which gives the numbered rules precedence over the lettered rules.
3) Emergence of marine insurance--
The third complain regarding general average has arisen because of the emergence of insurance and marine insurance, which has made general average redundant. In fact, because of the risk involved in general average, all parties now insure against responsibility for general average contribution.
4) Expense and delay in general average adjustment --
The fourth complain arises from the fact that the general average adjustment is expensive and is often so time consuming that it must be commenced before the right in law to contribution has been decided.
5) Contribution collection problem --
A fifth problem arise from the fact that in general average the money is collected after the event, as opposed to insurance, where premium is paid in advance. Many difficulties are encountered in obtaining general average bonds, while collecting of contribution from cargo interests is often made difficult in certain countries due to exchange control regulation.
6) Small general average ---
Lastly, unless the general average claim is very large, adjusters find adjustment quite innumerate.
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