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Principle Behind Concept of General Average - Assignment Example

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The author of the paper states that the principle behind the General Average Act which is that the losses that are incurred when an effort is made in order to save the ship from an imminent peril ought to be proportionately shared among the parties concerned…
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Principle Behind Concept of General Average
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Download file to see previous pages The York Antwerp Rules were the first codification of the General Average. The elements of the York Antwerp Rules include a common danger, voluntary jettison an effort to save must be successful. General Average has many applications including in marine insurance. Current issues with regard to the application of the General average relate to Piracy. The bone of contention is whether the general average can be applied in a case of piracy. There exist guidelines that categorically state a situation in which piracy can be covered by the general average.
According to Tetley (2000), the principle of GA (General Average) dates to as far back as 3000 years ago. The Rhodian law that was in existence at around this time embodied the principle of general advantage. The principal read in part that in an effort to make a ship to be light, merchandise may be thrown overboard. It goes ahead to state that, that which has been sacrificed (given) for the benefit of all, then, it shall be restored by the contributions of everyone. Currently, a record of the Rhodian law is inexistent. Roman Law is the only source that captures the Rhodian law. The Roman law was captured, expanded and repeated in the Roles of Oleron.
The first English decision that has been recorded in reference to the principle of general average was in the year 1799. The first American decision was in 1798 (Tetley, 2000). This was a maritime law concept both in practice and in origin and it had a very restricted application. With time, the evolution of commerce led to the use of general average as a form of marine insurance. There was a sharing of losses and risks during maritime ventures. The cargo owner had a right to claim for losses. The shipowner was also allowed to make claims for compensation for the losses that could not be attributed to his fault. The parties made so many demanding claims that varied to a great extent. There was a need to develop a standard that would then be utilized while calculating the contribution that each party was to make. This gave rise to the Glasgow Resolution (1860), in 1864 the York rules and the Antwerp/York rules (1877). The York/Antwerp Rules have undergone amendments with the latest amendments having being made in Sydney in 1994 at the general assemblies of the CMI (Comite Maritime International). ...Download file to see next pagesRead More
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