With average insurance
From Supply Chain Management Encyclopedia
Insurance with Average clause covers merchandise if the damage amounts to three percent or more of the insured value of the package or cargo. If the vessel burns, sinks, or collides, all losses are fully covered. In marine insurance, the word average describes partial damage or partial loss. Perils insured are in the Table 1 below.
Table 1. Marine Insurance Coverage Summary
Perils Covered Against | Coverage A of the Institute Marine Cargo Clauses | Coverage B of the Institute Marine Cargo Clauses | Coverage C of the Institute Marine Cargo Clauses | All Risks Coverage | With Average (Typical Coverage) | Free of Particular Average (Typical Coverage) |
Fire | YES | YES | YES | YES | YES | YES |
Explosion | YES | YES | YES | YES | YES | YES |
Stranding | YES | YES | YES | YES | YES | YES |
Sinking | YES | YES | YES | YES | YES | YES |
Collision | YES | YES | YES | YES | YES | YES |
General Average | YES | YES | YES | YES | YES | YES |
Jettison | YES | YES | YES | YES | YES | [1] |
Loss Overboard | YES | YES | YES | YES | [1] | |
Seawater Damage | YES | YES | YES | YES | [1] | |
Lightening | YES | YES | YES | YES | [1] | |
Condensation | YES | YES | ||||
Improper Stowage by Carrier | YES | YES | ||||
Theft | YES | YES | ||||
Pilferage | YES | YES | ||||
Leakage | YES | YES | ||||
Breakage | YES | YES | ||||
Damage While Loading/Unloading | YES | YES | YES | YES | ||
Damage on land Before Loading | YES | YES | YES | YES | YES | YES |