Free of Particular Average (FPA)

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Definition: Free of Particular Average (FPA)

It is a marine cargo insurance clause in certain countries which covers partial or full loss from calamities such as burning, sinking, collision, etc. It differs in different countries as it is an incoterm. FPA conditions are applicable where the items are easily damageable. Errors might be there in the vessel, etc.

Losses due to errors below a certain amount/percentage are not taken into consideration by the insurer. So, the insurer basically does not care much about the small packages/cargo.


It is now referred to as Institute Cargo Clauses or C clauses.

Eg: The ship sinks and all of the products catch fire or go down. In this case, the insurer will be held responsible but he won’t be if the products break in the route, but upto a particular percentage of the value of the goods.


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