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particular average in marine insurance

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Particular average in marine insurance refers to a partial loss of the subject matter insured caused by a peril insured against. This means that the loss is not a total loss of the insured property, but rather a partial loss.

1. Definition of Particular Average

The definition of particular average is found in Section 64(1) of the Marine Insurance Act, 1906 (Cap. 390). This section states that particular average is a partial loss of the subject matter insured caused by a peril insured against.

2. Examples of Particular Average

Some examples of particular average include:

  • Damage to cargo due to a storm at sea

  • Damage to a ship due to a collision

  • Damage to cargo due to fire

  • Damage to cargo due to theft

3. Measure of Indemnity for Particular Average

The measure of indemnity for particular average is the reasonable cost of repairs, as provided by Section 69 of the Marine Insurance Act, 1906 (Cap. 390). This means that the insured will be compensated for the cost of repairing the damaged property, up to the amount of the insurance policy.

4. Case Laws

4.1. The "Glenroy" (1922)

In this case, the ship "Glenroy" was damaged in a collision. The owners of the ship claimed particular average from their insurers. The insurers argued that the damage was not caused by a peril insured against, but rather by the negligence of the ship's master. The court held that the damage was caused by a peril insured against, and the insurers were liable for the particular average.

  • Parties: The owners of the ship "Glenroy" and their insurers

  • Outcome: The court held that the insurers were liable for the particular average.

4.2. The "Athelqueen" (1951)

In this case, the ship "Athelqueen" was damaged in a storm. The owners of the ship claimed particular average from their insurers. The insurers argued that the damage was not caused by a peril insured against, but rather by the negligence of the ship's master. The court held that the damage was caused by a peril insured against, and the insurers were liable for the particular average.

  • Parties: The owners of the ship "Athelqueen" and their insurers

  • Outcome: The court held that the insurers were liable for the particular average.

5. Conclusion

Particular average is a common type of loss in marine insurance. It is important for both insurers and insureds to understand the definition of particular average, the examples of particular average, and the measure of indemnity for particular average. This will help to ensure that claims are settled fairly and efficiently.

Sources:

  • The Marine Insurance Act, 1906 (Cap. 390)

  • The "Glenroy" (1922)

  • The "Athelqueen" (1951)

Answered by mwakili.com