The general average

[The main principles of general average are contained in the York-Antwerp Rules, 1994. The Rules define a general average act as follows:
There is a general average act when, and only when any extraordinary sacrifice or expenditure is intentionally and reasonable made or incurred for the common safety for the purpose of preserving from peril the property involved in a common maritime adventure.
In the context of marine insurance, the word "average" means a partial loss. General average must be distinguished from "particular average" which means an insure loss. For example, if fire is discovered on board a laden vessel, the following items make up the general average loss:
(1) Cost of damage caused by water or any other methods used to extinguish the fire
(2) Cost of repair if ships structure has to be altered to gain access to fire
(3) Value of any cargo damaged or jettisoned during efforts to control fire
(4) Cost of using the ship's equipment and the wages of the crew during the general average incident
In another example, if a vessel runs aground in a dangerous position, the following items would make up the general average loss:
(1) Cost of tugs to refloat the vessel, including the value of any salvaged award
(2) Cost of running ship's engines and other equipment to assist refloating
(3) Cost of discharging cargo into lighters and the cost of reloading
(4) Cost of pollution removal if cargo has been jettisoned and the value of the lost cargo
(5) Stores consumed and wages paid to crew during the general average incident
It is important to note that items of particular average are not calculated as part of the general average loss. In the grounding situation, for example damage caused to vessel as a consequence of the grounding would not be a part of the general average loss, but would form a hull and machinery claim. ]