🔍 Key Concepts

• General average vs particular average – when is the loss shared by all interests vs borne by the individual cargo owner? • The meaning of total loss, constructive total loss, and partial loss in marine insurance terms • Whether the damage is related to a voluntary sacrifice for common safety or just accidental damage to some cargo

💭 Think About

• Ask yourself: Was this fire damage a voluntary sacrifice made for the safety of the voyage, or just accidental damage to specific cargo? • Consider whether the entire interest (the whole cargo or ship) is lost or only a portion (some bales) and how that affects the type of claim. • Think about who should logically bear the loss: all cargo and ship interests together, or only the owner of the damaged cotton?

✅ Before You Answer

• Verify whether general average requires a deliberate, voluntary sacrifice or extraordinary expense made for the common safety. • Check the definitions of constructive total loss and whether they apply when only 20 bales of a larger general cargo are damaged. • Confirm that particular average refers to partial loss or damage falling on a specific interest (e.g., one cargo owner) rather than on all parties.