Particular Average

Particular Average refers to a principle in marine insurance, which pertains to losses that are specifically borne by one party rather than the collective group. This principle stands in contrast to General Average, where losses are shared among all parties involved in a maritime venture.

The concept of Particular Average originates from ancient maritime law, primarily shaped by the practices of trading and shipping in the Mediterranean. Its evolution can be traced through various maritime codes, including the Rolls of Oleron and the Consolato del Mare.

In contemporary maritime insurance, Particular Average is applied when assessing claims for damages or losses that do not affect the entire ship or cargo. Insurers typically cover only those losses that are explicitly stipulated in the insurance policy, leaving the insured responsible for losses deemed as Particular Average.

• If a shipment of bananas suffers damage due to spoilage while on board, this loss may be classified as Particular Average, affecting only the owner of the bananas.
• In the event a ship must take evasive action that results in damage to its own cargo, those damages would also be considered Particular Average, addressed solely by those whose cargo was harmed.

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