What is general average clause in marine insurance

General Average is a principle of maritime law that essentially establishes that all sea cargo stakeholders (owner, shipper, etc.) evenly share any damage or losses that may occur as a result of voluntary sacrifice of part of the vessel or cargo to save the whole in an emergency.

What is general average absorption clause?

A GA absorption clause is a provision inserted into a hull insurance policy. The clause requires the underwriters to absorb, up to an agreed amount, a claim in GA that the insured shipowner has against another party, most commonly cargo interests.

What is an example of general average?

A classic example of a General Average sacrifice is jettison to lighten a stranded vessel. Jettison is the throwing overboard of cargo or ship's material, equipment or stores. Other examples include stranding, fires, and collisions.

Which clause in insurance is covering the general average?

Clause 11: General Average and Salvage.

What is general average contribution?

General Average is a long-established principle of Maritime Law which requires contribution from all whose goods were saved to the losses of those whose goods were sacrificed at time of common peril.