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:
“The allurement that women hold out to men is precisely the allurement that Cape Hatteras holds out to sailors: they are enormously dangerous and hence enormously fascinating. To the average man, doomed to some banal drudgery all his life long, they offer the only grand hazard that he ever encounters. Take them away, and his existence would be as flat and secure as that of a moo-cow.”
—H.L. (Henry Lewis)
“In the middle classes the gifted son of a family is always the poorest—usually a writer or artist with no sense for speculation—and in a family of peasants, where the average comfort is just over penury, the gifted son sinks also, and is soon a tramp on the roadside.”
—J.M. (John Millington)
“Whether or not his newspaper and a set of senses reduced to five are the main sources of the so-called “real life” of the so- called average man, one thing is fortunately certain: namely, that the average man himself is but a piece of fiction, a tissue of statistics.”
—Vladimir Nabokov (1899–1977)