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|General Average (GA)|
An ancient principle of equity, recognized by maritime nations, pre-dating the concept of insurance and still valid today, in which all parties involved in a sea adventure (vessel, cargo, and freight) proportionately share losses resulting from a voluntary and successful effort to save the entire venture from an imminent peril. There are two types of General Average acts: 1.VOLUNTARY Sacrifice of a part of the vessel or a part of the cargo, e.g. jettison of property to stabilize the vessel during heavy weather. 2.Extraordinary expense necessarily incurred for the joint benefit of vessel and cargo, e.g. towing charges incurred to assist a disabled vessel to a port of refuge.