Particular loss , Marketing Research

Assignment Help:

Particular Loss : There are two types of partial losses as explained below:

General Average: Sometimes a ship owner either sacrifices some cargo the ship is carriage or incurs some expenditure which becomes necessary to save the journey. So a sacrifice or expenditure will have to be shared-by the interests in the saved journey. Thus, the insured will be protected from paying for the loss. Partial loss or Average of this natt ac is known as

General Average or GA and comes into being only when the ship carrying cargo arrives safely. If a ship is lost and does not, therefore, arrive a1 the ultimate destination, there can be no GA.

GA is defined as "an extraordinary sacrifice or expenditure intentionally and reasonably made or incurred for the common safety for the purpose of preserving from the peril, the property involved in a common maritime adventure. In other words, GA arises by either sacrificing (or destroying) the property (say, cargo) or incurring an expenditure (say, expenses to bring ship to safety). But the sacrifice tex pedicure must arise out of some extraordinary events, which might lead to loss to all the parities in the adventure Journeys). Further, the sacrifice expenditure must be made knowingly but prudently and reasonably.

Regarding GA, an accepted principle of maritime law is "that all who expose their property to maritime perils are in it together and should share in any misfortunate on an equal basis". In other words, GA sacrifices  expenditure is to be shared by all interest in the journey, i.e., the cargo owners, ship owners and freight earners.

GA expenditure can be understood clearly from the following examples:

i) Some cargo is thrown into the sea to lighten the ship in rough weather;

ii) Water is poured on cargo (not on fire) to extinguish a fire;

iii) Expenses are incurred to tow a ship in the danger of sinking to the safety of the port;

iv) A part of cargo is burnt to maintain steam in the ship's boilers when the ship runs short of fuel due to delay caused by heavy weather.

The sharing of GA sacrifice or expenditure by the three parties to the adventure is done in accordance with the intemationa1l.y agreed Rules, known as the York-Antwarp Kules 1974.

The working out of the shares and the preparation of the G.4 statement is entrusted to an Average Adjuster who is an expert in the field. When the ship arrives at tile destination port, it is declared to be on general average by the ship owner and an Average Adjuster is appointed. The Average Adjuster will draw up the statement of percentage of GA contribution by each cargo owner and calculate the value of shares of all interests. The

Ship owner then requires all these interests including cargo owners to pay a GA deposit and execute bond. Thereafter, cargo will be released to the cargo-owners. The ship owner may, however, deliver the cargo against either an underwriter's (insurance company's) or a banker's guarantee. On completion of final adjustment, the excess, if any, is to be paid by the cargo-owner by honouring the bond.

Where the cargo-owner has an insurance policy, he will recover the GA contribution or the loss suffered by him from the insurance company. All marine policies cover GA loss and sacrifice and the insurance companies settle claims for GA contribution and normally refund GA deposits.

Particular Average: It is defined as partial loss or damage caused accidentally by a peril insured against. Thus, when such a loss takes place, there is to be no contribution from other interest in the journey, as in the case of General Average loss. It becomes payable only when it is covered in the policy.


Related Discussions:- Particular loss

Explain about marketing, Explain about marketing. Marketing is a pervas...

Explain about marketing. Marketing is a pervasive phenomenon in the current day world. Each day we are exposed to marketing of goods and services, as well as ideas. It may be d

Foreign exchange transactions, Foreign Exchange Transactions : A foreign e...

Foreign Exchange Transactions : A foreign exchange transaction is ultimately the purchase or sale of one national currency against another arising out of import or export of goods

Determining the prices and policy decisions, 1.  Your company manufactures ...

1.  Your company manufactures consumer products mostly in the pet products category. You have developed a new line of rather unique bird feeders for wild birds such as cardinals, f

Commercial perspective, Commercial Perspective : Trade between two busines...

Commercial Perspective : Trade between two business firms located in different countries begins with the conclusion of an export contract. Under the contract, the duty of the expo

Organisation covering credit risk, ORGANISATION COVERING CREDIT RISK : The...

ORGANISATION COVERING CREDIT RISK : There are 40 organization providing cover for credit risk, the worldover. They are all member of union International Union of credit and Invest

Can family decision making influence consumer behaviour, Q: How family life...

Q: How family life cycle as well as family decision making can influence consumer behaviour? Ans: Families and Family Decision Making The Family Life Cycle- Individuals

Explain marketing concept and the societal marketing concept, Question 1: ...

Question 1: The product manager when introducing a new product wants the product to enjoy a long and happy life. (a) How will the ‘life' of a product be conceptually analyse

Illustrate feedback stage in organisational buying, Q. Illustrate feedback ...

Q. Illustrate feedback stage in organisational buying? The feedback stage: This stage is anxious with the establishment of order routine performance feedback and so on and henc

Form of contract-nature of export sales contract, Form of Contract: Th...

Form of Contract: There are no universally acceptable norms as to the form of export contracts. It need not be a formal document signed by both the parties and it need to be s

What is convergent validity, What is Convergent validity Convergent val...

What is Convergent validity Convergent validity is the extent to which scale correlates positively with other measures of same construct. It isn't essential that all these meas

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd