- general average
- A contribution by all the parties in a sea adventure to make good the loss sustained by one of their number on account of sacrifices voluntary made of part of the ship or cargo to save the residue and the lives of those on board from an impending peril, or for extraordinary expenses necessarily incurred by one or more of the parties for the general benefit of all the interests embarked in the enterprise. An obligation resting upon the vessel, the cargo, and the freight, in proportion to their respective values, and upon the owners of each, in proportion to the value of their property at risk, and enforceable by resorting to a lien upon the property saved from the common peril, or by actions against the persons bound to contribute. 48 Am J1st Ship § 621. While general average is not, eo nomine, insured against in marine policies, where it is payable in consequence of a peril insured against, the insurer is liable therefor. Peters v Warren Ins. Co. (US) 14 Pet 99, 10 L Ed 371. In case of a general average loss, the insurer is directly liable for the whole of the insured value of the property sacrificed for the general benefit, and upon payment is subrogated to the rights of the insured for contribution. Dickenson v Jardine (Eng) LR 3 CP 639, 14 ERC 431. See free from average unless general.
Ballentine's law dictionary. Anderson, W.S.. 1998.