Final answer:
In Ocean Marine insurance, the provision that obligates insurers to share the cost of losses associated with a captain's decision to voluntarily sacrifice a part of the ship or its cargo is known as General Average. General Average is a principle in maritime law where all parties involved in a sea voyage contribute proportionately to compensate for losses incurred to save the entire voyage from a common peril. It ensures that the financial burden is shared among the interested parties, promoting the spirit of collective risk-sharing.
Step-by-step explanation:
In Ocean Marine insurance, the provision that obligates insurers to share the cost of losses associated with a captain's decision to voluntarily sacrifice a part of the ship or its cargo is known as General Average.
General Average is a principle in maritime law where all parties involved in a sea voyage, such as the ship-owner, cargo owners, and insurers, contribute proportionately to compensate for losses incurred to save the entire voyage from a common peril. It ensures that the financial burden is shared among the interested parties, promoting the spirit of collective risk-sharing.
For example, if the captain decides to jettison a part of the cargo to prevent the entire ship from sinking during a storm, the costs incurred in such a sacrifice will be shared by all parties involved in the voyage.