What Are The Constituent Conditions Of General Average?

Ocean marine cargo insurance is responsible for compensation:

People's Republic of China

Accordingly, general average

Property in the same voyage meets common danger

The danger at sea must be shared by the property in the same voyage.

"The same sea voyage" refers to the whole process of ship pportation at the port of loading port at the time of loading at the port of loading and unloading at the port of discharge.

There must be a "common danger". If it is an empty carrier, or for the benefit of a single party or for salvage of a ship, it is not a general average for lack of joint risks.

The risk of property encountered in the same voyage may be both present and unavoidable. Such risks refer to the fact that the ship's accidents or special circumstances do not jeopardize the common safety of the cargo. However, if no contingency measures are taken, it will inevitably bring common risks to the cargo. For example, ships encounter bad weather during the voyage, the speed decreases sharply, and the time of navigation increases unexpectedly. The surplus fuel is not enough to reach the original port of destination. If it does not immediately go to the refuge near the port, it may be dangerous to ship cargo and take refueling measures, so it can constitute general average.

General average measures must be deliberate and reasonable.

Knowing that this measure will result in the sacrifice or payment of the additional cost of the ship, but the measures taken to protect the cargo from greater losses are intended general average measures.

Reasonable general average usually includes two aspects: the rationality of the measure itself and the reasonable measures.

In the case of the former, when the goods are in distress, they should choose the measures to remove the danger, effectively, economize and prevent or reduce the loss according to the specific circumstances at that time.

In the latter case, the reasonable limit should be judged according to the specific circumstances in distress, and measures exceeding the limit should not constitute general average.

Whether the measure is reasonable or not is relative. If the measures considered at that time were considered effective after considering all kinds of factors, the concrete implementation process failed to achieve the expected effect. The measure should also be considered reasonable, and the resulting sacrifice or expense could be included in the common sea damage.

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The sacrifice of general average must be special, and the cost of expenditure must be extra.

The sacrifices and expenses of the general average refer to the material loss and cost incurred as a result of the adoption of a common average.

The result of deliberate and reasonable measures in order to relieve the common risks of ship and cargo must be different from the average loss caused by accidents and the reasonable loss and expenses incurred in normal operation.

The sacrifice and cost of general average should be the direct consequence of the adoption of abnormal general average measures.

"Direct consequence" means that the loss or expense should be reasonably foreseen in the act of general average, and there should be a direct causal relationship between the general average act and the loss or cost.

General average measures must be effective.

The fundamental purpose of adopting general average measures is to preserve the safety of cargo and other properties, and to share the sacrifice and expenses of general average according to the value of the rescued property by the rescued property owner or the beneficiary.

If there is no property to be rescued, there is no basis for apportionment of sacrifices and expenses of general average. After adopting general average measures, it must be effective. If a measure fails to avoid total loss of cargo and other property, it will not constitute general average.

However, the "effect" mentioned here does not require all property to be rescued. Even if only part of the property is rescued, it will not affect the establishment of general average.

In addition to the provisions of the constitution directly governing the general average, if the parties incorporate the adjustment rules of any version into the bill of lading, charter party, insurance policy or other dispute settlement agreement, the composition conditions of the general average shall be determined by the rule of calculation.