General average losses involve which sharing?

General average losses involve which sharing?

• A. Only ship owner bears loss
• B. Only cargo owner bears loss
• C. All parties participating share the loss
• D. Insurer bears all loss

Answer: (C)

General average sharing means that when a sacrifice is made to save the voyage, the resulting loss or expense isn’t borne by one party alone. All parties with an interest in the voyage—the shipowner, the cargo owners, and even the freight—share the cost proportionally to their respective interests. The insurer covers the insured portions, but the overall loss is distributed among all participants. So, the loss is shared by all parties participating, not borne by just the shipowner, cargo owner, or by the insurer alone.

General average sharing means that when a sacrifice is made to save the voyage, the resulting loss or expense isn’t borne by one party alone. All parties with an interest in the voyage—the shipowner, the cargo owners, and even the freight—share the cost proportionally to their respective interests. The insurer covers the insured portions, but the overall loss is distributed among all participants. So, the loss is shared by all parties participating, not borne by just the shipowner, cargo owner, or by the insurer alone.