General Average

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General Average

Provision in maritime law where all shippers on a given voyage would reimburse the ship line in the event of vessel sinking or catastrophic damage. It also provides for the reimbursement to those shippers whose cargo was thrown overboard in order to save the vessel.

General Average

In maritime law, a form of insurance with the condition 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 pay restitution. The form of the general average is agreed upon in advance; normally, the companies pay in proportion to the amount of cargo they each had on the ship. This is done to reduce risk to all companies using a ship to transport their goods.
References in periodicals archive ?
General averages similarly do not cover losses resulting from delays.
These centers often experience an absenteeism rote of 30% to 40% on any given day, whereas the absenteeism rate for industry in general averages 5% to 20%, depending upon the particular business, said Dr.
The company has beaten the S&P 500 return in three of the last four years, losing out to the general averages only in 2003, when OII returned 'only' 13.
Pricing at Payless in general averages under $20 an item for shoes and accessories from the Payless branded collection.

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