What is the meaning behind General average?

The term General average refers to a shipping accident. The word comes from Arabic and is derived from "awar", which means "damage". The term subsequently came to Germany and other EU countries via Italy.

The Havarie is clearly defined in German commercial law, the HGB, so that certain rules must be observed. There is even a corresponding definition of General average . According to § 537 No. 5 HGB, it is only a shipping incident. This occurs in various forms. These include the following events:

• Capsize
• Collision of a vessel
• Stranding of a vessel
• An explosion in a vessel
• A fire in a vessel
• A defect on or in the vessel

The term General average is not used in commercial law itself. Here the term "General average" is used. When it comes to insurance regulations, these are based on the definitions and rules of commercial law.

The great General average

In most cases, the term General average is used in relation to great General average . In this case, the ship's equipment, cargo or even the ship itself is damaged or abandoned by order of the captain.

This is intended to rescue a so-called extraordinarily dangerous situation, often involving human life. Furthermore, the term "sea throw" is used very frequently. This means that a ship's cargo is thrown overboard. This serves both to avert danger and for rescue purposes.

Commercial General average regulations

The main issue here is who covers the General average-damage. This also means that the question arises as to who is liable for compensation.

The focus here is on ship collisions involving at least two ships and great Havarie. Damage in the event of a great General average is always covered by all parties involved. This includes the shipowner, the cargo debtor and the owner of the cargo.

Good to know: Liability also always applies to remote damage. In other words, damage caused without a collision, such as damage caused by disregarded navigation rules or incorrectly executed manoeuvres.

There is also the subject matter of the regulation, which now deals with the recovery of ships and the recovery of ship cargo.