What is a General Average (GA)?
A general average act is succinctly defined in Rule A of the York Antwerp Rules 1994 as follows:
“There is a general average act when, and only when, any extraordinary sacrifice or expenditure is intentionally and reasonably made or incurred for the common safety for the purpose of preserving from peril the property involved in a common maritime adventure.”
The Marine Insurance Act, 1906 of the United Kingdom defines “general average act” in virtually identical terms at sect. 66(2):
“There is a general average act where any extraordinary sacrifice or expenditure is voluntarily and reasonably made or incurred in time of peril for the purpose of preserving the property imperilled in the common adventure.”
The five component parts of a general average loss are therefore:
a) the sacrifice or expenditure must be extraordinary
b) the act must be intentionally and voluntarily and not inevitably
c) and reasonably made
d) the must be against a peril,
e) the action must be for the common safety in the common maritime adventure.
“That which has been sacrificed for the benefit of all shall be made good by the contribution of all”
source: A Guide to General Average (Richards Hogg)
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