01.Core Concepts

A particular average is a loss that falls entirely on a particular interest Under the free-of-particular average (F P A) clause, partial losses are not covered unless the loss is caused by certain perils, such as stranding or sinking A general average is a loss that falls on all parties to the voyage, incurred for the common good Each party must pay its share of the loss based on the proportion that its interest bears to the total value in the venture Conditions for a general average loss include imminent peril, voluntary sacrifice, preservation of at least part of the value