General Average Contribution

(redirected from General Average Contributions)

General Average Contribution

The amount of money paid by each shipper involved in a General Average.

General Average Contribution

The amount a company pays the shipping company or the losing company in a general average. A general average is a form of insurance in maritime law stating that if one company's cargo must be thrown overboard in order to save the ship from sinking, all other companies with cargo on the ship must pay restitution. Normally, each company's general average contribution is in proportion to the amount of cargo each had on the ship. This is done to reduce risk to all companies using a ship to transport their goods.
Full browser ?