Final answer:
The levels of recovery for losses in marine incidents include salvage, general average, and particular average. These concepts are closely related to marine insurance and determine the stages of compensation that can be obtained after damages or losses occur.
Step-by-step explanation:
In marine incidents, the levels of recovery for losses refer to the different stages of compensation that can be obtained for damages or losses that occur. These levels usually include salvage, general average, and particular average.
Salvage is the process of saving a vessel or its cargo from imminent danger. It involves rewarding those who provide assistance with a portion of the value they saved.
General average occurs when sacrifices or expenses made during a marine incident benefit all parties involved. In such cases, the costs are divided proportionally among the vessel, cargo, and freight.
Particular average applies when losses are limited to a specific individual or a particular part of the cargo. In these cases, the party that suffered the loss bears the cost.
These concepts are closely related to marine insurance. Marine insurance policies typically cover various risks, including damages from accidents, losses due to theft or piracy, and certain liabilities. Depending on the terms of the policy, the insurer may reimburse the insured for the financial loss incurred.
For example, if a ship carrying goods encounters a storm and some of the cargo is damaged, the owner may claim compensation through their marine insurance policy.