General Average is an intentional act carried out to safeguard vessels and cargo during a dangerous voyage.
What is General Average ?
General Average is a term used in marine insurance to refer to an action taken to reduce loss or damage to a vessel and the goods being transported during a dangerous voyage. If danger occurs during the journey, the shipowner or the captain of the ship has the right to make an executive decision to unload some of the goods to safeguard the vessel and the rest of the goods. This process of unloading is called jettison. In such situations, the vessel owner declares General Average, and all losses are proportionately shared by all the stakeholders.