ENTITLEMENT, ADJUSTMENT AND ARTIFICIAL GENERAL AVERAGE
1) ENTITLEMENT
a) Ordering general average act:-
The general average act was usually ordered by the master or other crew member in authority of vessel. Now a days in USA and in UK even a third party like local port authority, provided that it is necessary for the common safety. It is usual practice today that the shipowners order the act, directly or through agents.
b) Carrier's actionable fault precludes entitlement:-
A claimant is not entitled to obtain contribution from the other parties to the common venture simply because his sacrifice or expenditure falls within the terms of Rule A of the York-antwerp rules. Something more is required, the carrier must not have been at fault in law. In other words a carrier in not entitled to obtain contribution in general average from cargo, if the peril which necessitates the extraordinary sacrifice or expenditure arises as a result of his actionable fault or negligence in law, or of that of his employees.
2) ARTIFICIAL GENERAL AVERAGE
Artificial general average is the granting of the claim for general average even when one of the 5 basic principles of general average found in rule A of the York-Antwerp rules of 1994 is not present.
Because there is no specific peril requirement in rules X(b) and XI(b) of York-Antwerp 1994, which is related to expenses at port of discharge and wages of master and crew, claims may be made for general average. This is 'general average by agreement' or 'artificial general average'.
3) ADJUSTMENT
The process of adjusting a general average sacrifice or expenditure begins with the 'declaration' of the general average. general average claims must be submitted in writing to the average adjuster within 12 months of the date of termination of the common maritime adventure.
General average is ordinarily adjusted at the place where the voyage terminates according to the law applicable there. The contract usually provides that the adjustment is conducted accordingly to the York-Antwerp rule, unless the parties choose another mode of adjustment. The actual adjustment is usually carried out by professional average adjuster, usually at the shipowners request. The general average is apportioned by multiplying the value of each contributory interest by a fraction, composed of the value of all the general average expenses, divided by the sum of the contributory values.
a) Ordering general average act:-
The general average act was usually ordered by the master or other crew member in authority of vessel. Now a days in USA and in UK even a third party like local port authority, provided that it is necessary for the common safety. It is usual practice today that the shipowners order the act, directly or through agents.
b) Carrier's actionable fault precludes entitlement:-
A claimant is not entitled to obtain contribution from the other parties to the common venture simply because his sacrifice or expenditure falls within the terms of Rule A of the York-antwerp rules. Something more is required, the carrier must not have been at fault in law. In other words a carrier in not entitled to obtain contribution in general average from cargo, if the peril which necessitates the extraordinary sacrifice or expenditure arises as a result of his actionable fault or negligence in law, or of that of his employees.
2) ARTIFICIAL GENERAL AVERAGE
Artificial general average is the granting of the claim for general average even when one of the 5 basic principles of general average found in rule A of the York-Antwerp rules of 1994 is not present.
Because there is no specific peril requirement in rules X(b) and XI(b) of York-Antwerp 1994, which is related to expenses at port of discharge and wages of master and crew, claims may be made for general average. This is 'general average by agreement' or 'artificial general average'.
3) ADJUSTMENT
The process of adjusting a general average sacrifice or expenditure begins with the 'declaration' of the general average. general average claims must be submitted in writing to the average adjuster within 12 months of the date of termination of the common maritime adventure.
General average is ordinarily adjusted at the place where the voyage terminates according to the law applicable there. The contract usually provides that the adjustment is conducted accordingly to the York-Antwerp rule, unless the parties choose another mode of adjustment. The actual adjustment is usually carried out by professional average adjuster, usually at the shipowners request. The general average is apportioned by multiplying the value of each contributory interest by a fraction, composed of the value of all the general average expenses, divided by the sum of the contributory values.
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