Voyage Charters
Page 675
Chapter 20
General Average
| 11. | General average | 130 |
| General average to be settled according to York-Antwerp Rules, | 131 | |
| 1974. Proprietors of cargo to pay the cargo's share in the general | 132 | |
| expenses even if same have been necessitated through neglect or | 133 | |
| default of the Owners' servants (see clause 2). | 134 |
| 12. | General average and New Jason clause | 178 |
| General Average shall be adjusted in London unless otherwise agreed in Box | 179 | |
| 22 according to York-Antwerp Rules 1994 and any subsequent modification | 180 | |
| thereof. Proprietors of cargo to pay the cargo's share in the general expenses | 181 | |
| even if some have been necessitated through neglect or default of the Owners | 182 | |
| servants (see Clause 2). | 183 | |
| If General Average is to be adjusted in accordance with the law and practice of | 184 | |
| the United States of America, the following Clause shall apply: "In the event of | 185 | |
| accident, danger, damage or disaster before or after the commencement of the | 186 | |
| voyage, resulting from any cause whatsoever, whether due to negligence or | 187 | |
| not, for which, or for the consequence of which, the Owners are not | 188 | |
| responsible by statute, contract or otherwise, the cargo shippers, consignees | 189 | |
| or the owners of the cargo shall contribute with the Owners in General Average | 190 | |
| to the payment of any sacrifices, losses or expenses of a General Average | 191 | |
| nature that may be made or incurred and shall pay salvage and special charges | 192 | |
| incurred in respect of the cargo. If a salving vessel is owned or operated by the | 193 | |
| Owners, salvage shall be paid for as fully as if the said salving vessel or vessels | 194 | |
| belonged to strangers. Such deposit as the Owners, or their agents, may deem | 195 | |
| sufficient to cover the estimated contribution of the goods and any salvage and | 196 | |
| special charges thereon shall, if required, be made by the cargo, shippers, | 197 | |
| consignees or owners of the goods to the Owners before delivery." | 198 |
English law
20.1 The principle which underlies general average is that where any property at risk in a maritime adventure is sacrificed, or where extraordinary expenditure is incurred, for the common safety, the owners of any of the other property at risk which completes the adventure safely should contribute to the loss or expense, in proportion to the values of their property which has survived. In English law this principle has been codified in section 66 of the Marine Insurance Act 1906:-
"66. General average loss. - (1) A general average loss is a loss caused by or directly consequential on a general average act. It includes a general average expenditure as well as a general average sacrifice.Page 676
- (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.
- (3) Where there is a general average loss, the party on whom it falls is entitled, subject to the conditions imposed by maritime law, to a rateable contribution from the other parties interested, and such contribution is called a general average contribution."
The Act is, of course, primarily concerned with the right of the owner of the ship, cargo or freight to be indemnified by his own insurer against general average losses or contributions. It has been held, however, that when general average is to be adjusted in accordance with English law, the provisions of the Marine Insurance Act apply as between the parties to the adventure - the owners of ship, cargo and freight - as well as between a party and his insurer.1 However, the principles set out in the Act may be excluded or modified by agreement between the parties, and this is the almost invariable practice by reason of the incorporation of the York-Antwerp Rules into the contract of carriage.