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MARINE INSURANCE ACT 1906 - SECT 66

General average loss.

66.(1) A general average loss is a loss caused by or directly consequential on
a general average act. It includes a general average expenditure as well as a
general average sacrifice.

(2) There is a general average act where any extraordinary sacrifice or
expenditure is voluntarily and reasonably made or incurred in time of peril
for the purpose of preserving the property imperilled in the common adventure.

(3) Where there is a general average loss, the party on whom it falls is
entitled, subject to the conditions imposed by maritime law, to a rateable
contribution from the other parties interested, and such contribution is
called a general average contribution.

(4) Subject to any express provision in the policy, where the assured has
incurred a general average expenditure, he may recover from the insurer in
respect of the proportion of the loss which falls upon him; and, in the case
of a general average sacrifice, he may recover from the insurer in respect of
the whole loss without having enforced his right of contribution from the
other parties liable to contribute.

(5) Subject to any express provision in the policy, where the assured has
paid, or is liable to pay, a general average contribution in respect of the
subject insured, he may recover therefor from the insurer.

(6) In the absence of express stipulation, the insurer is not liable for any
general average loss or contribution where the loss was not incurred for the
purpose of avoiding, or in connexion with the avoidance of, a peril insured
against.

(7) Where ship, freight, and cargo, or any two of those interests, are owned
by the same assured, the liability of the insurer in respect of general
average losses or contributions is to be determined as if those subjects were
owned by different persons.

Extent of liability of insurer for loss.

© 1906 Crown Copyright

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