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:
“Always remember that a child doesn’t have to be average to be normal. Children with very different temperaments can be equally successful.”
—Lawrence Kutner (20th century)
“... to be successful a person must attempt but one reform. By urging two, both are injured, as the average mind can grasp and assimilate but one idea at a time.”
—Susan B. Anthony (1820–1906)
“Japanese food is very pretty and undoubtedly a suitable cuisine in Japan, which is largely populated by people of below average size. Hostesses hell-bent on serving such food to occidentals would be well advised to supplement it with something more substantial and to keep in mind that almost everybody likes french fries.”
—Fran Lebowitz (b. 1975)