Average
The term "Average" has one meaning:
Average in Marine Insurance Terms is "an equitable apportionment among all the interested parties of such an expense or loss."
- General Average stands apart for Marine Insurance. In order for General Average to be properly declared, 1) there must be an event which is beyond the shipowners control, which imperils the entire adventure; 2) there must be a voluntary sacrifice, 3) there must be something saved.
The voluntary sacrifice might be the jettison of certain cargo, the use of tugs, or salvors, or damage to the ship, be it, voluntary grounding, knowingly working the engines that will result in damages.
"General Average" requires all parties concerned in the maritime venture (Hull/Cargo/Freight/Bunkers) to contribute to make good the voluntary sacrifice. They share the expense in proportion to the 'value at risk" in the adventure.
"Particular Average" is the term applied to partial loss be it hull or cargo.
- Co-insurance – is the situation where an insured has under-insured, i.e., insured an item for less than it is worth, average will apply to reduce the amount payable.
An average adjuster is a marine claims specialist responsible for adjusting and providing the general average statement. An Average Adjuster in North America is a 'member of the association of Average Adhjusters' http://www.usaverageadjusters.org
To insure the fairness of the adjustment an General Average adjuster is appointed by the shipowner and paid by the insurer.
Read more about this topic: Marine Insurance
Famous quotes containing the word average:
“And since the average lifetimethe relative longevityis far greater for memories of poetic sensations than for those of heartbreaks, since the very long time that the grief I felt then because of Gilbert, it has been outlived by the pleasure I feel, whenever I wish to read, as in a sort of sundial, the minutes between twelve fifteen and one oclock, in the month of May, upon remembering myself chatting ... with Madame Swann under the reflection of a cradle of wisteria.”
—Marcel Proust (18711922)
“The average Kentuckian may appear a bit confused in his knowledge of history, but he is firmly certain about current politics. Kentucky cannot claim first place in political importance, but it tops the list in its keen enjoyment of politics for its own sake. It takes the average Kentuckian only a matter of moments to dispose of the weather and personal helath, but he never tires of a political discussion.”
—For the State of Kentucky, U.S. public relief program (1935-1943)
“The average Ph.D. thesis is nothing but a transference of bones from one graveyard to another.”
—J. Frank Dobie (18881964)