Question

In Ocean Marine Insurance, a general average loss is:

a. Any loss that is not total.
b. A loss in which the property is not completely destroyed, but the cost of salvage or repair would exceed the value of the property.
c. A partial loss arising from a sacrifice.
d. A partial loss that does not arise from jettison.

Answer 1

In Ocean Marine Insurance, a general average loss refers to a situation where the cost of salvage or repair of a property exceeds its value.

Step-by-step explanation:

In Ocean Marine Insurance, a general average loss refers to a situation where the property is not completely destroyed, but the cost of salvage or repair would exceed the value of the property.

For example, if a ship carrying goods encounters a storm and some cargo needs to be jettisoned to save the ship, the cost of salvaging the remaining cargo would be higher than the value of the jettisoned cargo. In this case, a general average loss would be declared.

Therefore, the correct option is b. A loss in which the property is not completely destroyed, but the cost of salvage or repair would exceed the value of the property.