GENERAL AVERAGE ACT
GENERAL AVERAGE ACT:-
General average act is defined in Rule A of YORK ANTWERP RULE 1994 and 2004 as follows:-
There is a general average act when, and only when, any extraordinary sacrifice or expenditure is intentionally and reasonably made or incurred for the common safety, for the purpose of preserving from the peril, the property involved in a common maritime adventure.
Essential features of a general average act:-
1) There must be an extraordinary sacrifice or expenditure-- Examples are
a) cargo jettisoned to re float a grounded vessel
b) Machinery damage sustained during re floating operation
c) Cost of salvage operation including salvors' reward.
d) Cost of entering, staying at and leaving a port of refuge.
2) Sacrifice or expenditure must be intentionally made or incurred -- Sacrifice should be intentional and not by some accident. Examples are
a) Ship's CO2 cylinders are discharged in order to put off the fire on board.
b) Cost of wetting damage done to previously undamaged cargo.
c) beaching a leaking ship in order to prevent her foundering.
3) Sacrifice or expenditure must be reasonably made or incurred--
To allowed in general average act, the sacrifice or expenditure must be reasonably made or incurred. When more cargo is jettisoned than required to refloat a grounded ship, the excess would not be allowed in general average.
4) The sacrifice or expenditure must be made for common safety---
The sacrifice or expenditure must be made for the benefit of all the parties to the common maritime adventure and not for the benefit of one party. Example -- To deviate the vessel for repairs of refer plant on a refer vessel is not a general average.
5) The sacrifice or expenditure must be made for the purpose of preserving the property from peril:-
The peril must have been real and substantial, although it need not have been imminent. Example--
A vessel which lost main engine power in mid ocean would be in peril, even though the weather at that time might be good. But later the ship and cargo would come to grief either by running aground and breaking up.
#Principlesofmarineinsurance, #marineengineering, #iappcertificate, #propellercurve, #criticalequipment #criticalequipmentlist, #conditionofassignment, #conditionsofassignment, #dynamicstabilityofship,
General average act is defined in Rule A of YORK ANTWERP RULE 1994 and 2004 as follows:-
There is a general average act when, and only when, any extraordinary sacrifice or expenditure is intentionally and reasonably made or incurred for the common safety, for the purpose of preserving from the peril, the property involved in a common maritime adventure.
Essential features of a general average act:-
1) There must be an extraordinary sacrifice or expenditure-- Examples are
a) cargo jettisoned to re float a grounded vessel
b) Machinery damage sustained during re floating operation
c) Cost of salvage operation including salvors' reward.
d) Cost of entering, staying at and leaving a port of refuge.
2) Sacrifice or expenditure must be intentionally made or incurred -- Sacrifice should be intentional and not by some accident. Examples are
a) Ship's CO2 cylinders are discharged in order to put off the fire on board.
b) Cost of wetting damage done to previously undamaged cargo.
c) beaching a leaking ship in order to prevent her foundering.
3) Sacrifice or expenditure must be reasonably made or incurred--
To allowed in general average act, the sacrifice or expenditure must be reasonably made or incurred. When more cargo is jettisoned than required to refloat a grounded ship, the excess would not be allowed in general average.
4) The sacrifice or expenditure must be made for common safety---
The sacrifice or expenditure must be made for the benefit of all the parties to the common maritime adventure and not for the benefit of one party. Example -- To deviate the vessel for repairs of refer plant on a refer vessel is not a general average.
5) The sacrifice or expenditure must be made for the purpose of preserving the property from peril:-
The peril must have been real and substantial, although it need not have been imminent. Example--
A vessel which lost main engine power in mid ocean would be in peril, even though the weather at that time might be good. But later the ship and cargo would come to grief either by running aground and breaking up.
#Principlesofmarineinsurance, #marineengineering, #iappcertificate, #propellercurve, #criticalequipment #criticalequipmentlist, #conditionofassignment, #conditionsofassignment, #dynamicstabilityofship,
Comments