INTRODUCTION
An ancient concept over 2500 years old and
historically used in a variety of contexts.
Now applied solely to the transport of goods by
ship
Rhodian law if in order to lighten a ship
merchandise has been thrown overboard, that
which has been given for all should be replaced
by the contribution of all; retained in other
major legal systems
vessel
cargo
freight.
EXAMPLE OF SITUATION
The party claiming in G.A have to prove that both the G.A
act and the amount of any allowance are reasonable.
ELEMENTS OF G.A.
In order to give rise to a claim for G.A contribution, all
elements of G.A. need to be fulfilled.
If any of the elements is not fulfilled, there is NO
right to contribution from the other interests.
GeneralAverage
EXTRAORDINARY SACRIFICE
2. BY CARGO
Jettison (e. throwing overboard of cargo or part of it in
order to lighten the ship and keep her afloat).
jettison of deck cargo will give rise to GA with a
condition that it is carried in accordance with a
recognised custom of the trade/with the agreement of
all interests in the voyage).
E.g it is the custom of timber trade to carry the cargo
on deck.
Burning of cargo as fuel when the coal supply has run
short (provided that the original supply was sufficient).
Damage / loss of cargo during operations to extinguish a
fire on board.
3. BY FREIGHT
Example:
Fire occurred by accident and the use of water to
extinguish fire is an intentional act.
Therefore, water damage may be allowable in GA
but damage due to fire itself is not allowed in GA
and remains particular average. (Rule III)
Smoke damage is not allowable in GA as it is
impossible to distinguish between smoke damage
due to fire itself and smoke damage due to
application of water
IF CARGO IS INSURED
The marine cargo insurer should be notified immediately.
The insurance company will give the G.A Bond.
**G. A Bond is a document whereby it is agreed that shipowner
delivers to the consignees their cargo, and the underwriter will pay
G.A contribution and will furnish the shipowner with full information
as to the value of the cargo so that G.A will be properly assessed.
REFERENCES