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General Average

General Average is an internationally recognised system of casualty management where intentional losses or expenses are shared and paid for by all those involved in the common maritime adventure.

Our job as General Average Adjusters is to:

  • Identify the General Average situation and advise the parties on all the steps that need to be taken in managing the General Average
  • Organise the process of collection of General Average security from the contributing interests. On a modern container vessel this can mean dealing with thousands of Bills of Lading
  • Prepare the adjustment according to the terms of the relevant contract of affreightment evidenced in the bill of lading or charterparty
  • Collect contributions due under the adjustment.

We also advise owners on special General Average clauses to be included in their Hull & Machinery policies which avoid the necessity of collecting General Average security on smaller casualties.

Our global network deals with the adjustment of General Average worldwide. In particular we have offices in locations such as London, New York, Hong Kong and Tokyo in order to comply with charterparty provisions concerning place of adjustment of General Average.

Key Contacts

Richard Cornah
Chairman

Tel +44 151 235 5554
Mobile +44 7785 948 830
Email richard.cornah@rhl-ct.com

Andrew Paton
Director - Marine

Tel +44 151 235 5567
Mobile +44 7798 775 075
Email andrew.paton@rhl-ct.com

Paul Silver
Managing Director, Marine

Tel +44 20 7015 2046
Mobile +44 7785 948 832
Email paul.silver@rhl-ct.com

Benson Chiu
Managing Director - Greater China, Head of North Asia

Tel +852 2399 6188
Mobile +852 9831 2812
Email benson.chiu@ctplc.com

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RHL News and Latest Publications

An adjusters’ note on substituted expenses and ransom payments – “The Longchamp”

The Court of Appeal has reversed the 2014 High Court judgement that crew wages and fuel consumed during lengthy ransom negotiations with Somali pirates could be allowed as general average under Rule F of the York Antwerp Rules. This article provides insight into both the High Court and Court of Appeal decisions, and clarifies the test for establishing an allowance under Rule F.

"Environmental liabilities in particular average - Part 2"
Situations in which pollution-related costs can be recovered in general average (GA) have been discussed in our previous article, "Environmental liabilities in general average - Part 1". We will now consider when the costs of cleaning up pollution in dry-dock may be  covered by particular average (PA).

"Environmental liabilities in general average - Part 1

The liability aspect of environmental costs falls traditionally within the ambit of P&I cover. However, there can be situations whereby such costs can be recovered as either general average (GA) or particular average (PA) from property insurers. This article will consider the topic from a GA point of view.

An adjuster's note on constructive total loss

This was a first instance trial in which the underwriters of the “Renos” attempted to defend a claim by the assured for constructive total loss of the vessel following significant damage caused by a fire in the engine room in Suez in August 2012. Notice of abandonment was tendered in February 2013. From an adjusting perspective, it raises some interesting points concerning which costs should be included in the assessment of a claim for constructive total loss. We also take the opportunity to note some of the differences in approach to claims for CTLs between the conditions commonly used in the market.

Insurance Act 2015/Enterprise Act 2016

Because the standard Institute Clauses provide that “This insurance is subject to English law and practice”, the first significant statutory changes under English law since the 1906 Marine Insurance Act are of general interest to insurers and assureds worldwide.

 

Click the link below to view further douments and publications from Richards Hogg Lindley.