Particular average insurance

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Particular average means marine insurance provision under which damages or expenses incurred by a shipper (whose cargo is exposed to a danger) are borne by that shipper only. Such damages or expenses occur by direct harm to the ship and/or cargo, or in a course of action to prevent initial or additional harm to them. Particular average, like general-average is independent of the insurance cover bought for the cargo. Instead, it arises out of the contract between the cargo-owner and the ship-owner. Now largely replaced by the relevant institute cargo clause.[1] Particular average insurance is a marine insurance term which refers to partial loss on an individual shipment from one of the perils insured against, regardless of the balance of the cargo. Particular average insurance can usually be obtained, but the loss must be in excess of a certain percentage of the insured value of the shipment, usually three to five percent, before a claim will be allowed by the company.[2]

See also: Free of particular average, Marine insurance.


  2. Glossary of Shipping Terms, Maritime Administration, Washington, DC, 2008 |
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