Steps in the event of a General Average ~ Insurance Academy

General Average or general loss is a loss that is intentionally carried out or costs that are deliberately incurred for the safety of all interested parties. In this case, all parties who benefit from this sacrifice must bear the loss in a proportionate manner. For example, a ship is facing the danger of big waves in the ocean, and to prevent the ship from sinking the captain decides to throw into the sea some of the cargo to lighten the ship’s symbol, or order to cut the electric wires to prevent fires. The loss or damage intentionally for the safety of the ship and cargo is called the general average which must be borne by the parties concerned proportionally.

In the event of a General Average, the ship owner, average adjuster, and Marine Cargo insurance / Marine Hull Insurance must take the following important steps:

Ship Owner:

Doing General Average Declaration.
Pointing Average Adjuster.
Conducting Rescue Efforts.
Completing Supporting Documents.

Average Adjusters:

Collecting Documents and Information Regarding General Average Events.
Contacting the Property Owner to request the signature of the Average Bond and
request a copy of the Invoice and Bill of Lading.
Contacting Property Insurance to request the signature of the Average Guarantee and request a copy of the Insurance Policy.
Appoint an Independent Surveyor to conduct a survey.
Providing Advice to Ship Owners.
Calculating the General Average Contribution.

Hull Insurance and Freight Insurance: