Stranding, grounding, sinking, or capsize of the ship PDF

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This document provides: Stranding, grounding, sinking, or capsize of the ship, General average sacrifice and general average contribution...

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Stranding, grounding, sinking, or capsize of the ship

Stranding’ means running aground; merely striking a rock and remaining stuck for a little over a minute is not a stranding. A stranding necessarily involves an accident but grounding need not; for example, where a ship is designed so that it can be deliberately moored so that as it falls with the tide, it rests on the sea or river bed, and prima facie only loss reasonably attributable to fortuitous grounding is covered.

General average sacrifice and general average contribution

In a sea voyage three interests may be at risk: the shipper’s interest in the cargo; the shipowner’s interest in the ship; and, if different, the carrier’s interest in freight charges. In consequence, they are in a sense involved in a ‘common marine adventure.

Under s 66(2) of the Marine Insurance Act 1906, for the sacrifice or expenditure to attract general average, it must have been extraordinary, voluntarily, and reasonably made, and in a time of danger for the purpose of preserving the property of at least two parties.

Under s 66(4) of the Marine Insurance Act 1906, in the case of a general average sacrifice, the assured may ‘recover in respect of the whole loss without having enforced his right of contribution from the other parties liable to contribute....