General Average (Havarie-Grosse)
General average is a marine law principle under which losses and expenses deliberately and reasonably incurred to save a ship and its cargo from a common peril are shared proportionally by all parties with an interest in the voyage.
Concept
General average, in maritime law, refers to losses, damage, or expenses that the master or shipowner deliberately and reasonably incurs to save the ship, cargo, and other interests aboard from a common peril (for example, jettisoning cargo to save the vessel). The principle is governed by the York-Antwerp Rules, the internationally recognized framework for general average.
Allocation Principle
Unlike particular average, where the affected party alone bears the loss, losses and costs incurred under general average are allocated proportionally among all parties based on the value of the interests saved (ship, cargo, freight). The calculation is performed by a specialized expert (average adjuster) through the so-called average adjustment process.
Relevance for Marine Insurance
Hull insurers of the vessel and cargo insurers are regularly obligated, through the general average contribution, to make payments on behalf of their respective policyholders, making the general average clause a standard component of marine transport policies and hull insurance conditions.