Posted in Operations and Supply Chain Terms, Total Reads: 219
Definition: Particular Average
Particular Average is defined as the average that comes as a result of a contract between the cargo owner and ship owner. It is independent of the insurance cover bought for the cargo.. When we talk about marine trade, there are certain provisions that govern it.
General average and particular average fall in the ambit of such trade. If there is a partial loss to the cargo, while transportation, the marine insurance policies do not cater to such partial losses. These partial losses are referred to as “Average” loss.
Partial losses come under separate provision. This provision is a result of a predetermined contract. This average is called particular average and therefore it is outside the scope of standard marine policies and regulations.