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CHAPTER 3 Qualifying Losses

General Average

Page 50 CHAPTER 3 Qualifying Losses I Introduction 3.1 The party claiming a general average contribution must prove that the relevant loss was a general average loss and that it was caused by a general average act, which in turn can be said to be a response to a general average event. Such events commonly include grounding, fire, shifting of cargo in heavy weather, machinery breakdown or accident, requiring possibly jettison, lightening, salvage, towage, offloading and reloading, repairs and port of refuge expenses. General average losses include, obviously, general average sacrifices and general average expenditures. In addition, they include other losses resulting from general average acts, such as incidental damage occurring in attempting to rectify the situation, e.g. from flooding a hold and damaging cargo in order to extinguish a fire. Losses which qualify for claims for general average contributions are commonly said to be “admissible” or “allowed” in general average and, therefore, referred to as “allowances”.

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