Particular average
A partial loss borne by the affected interest alone, as opposed to general average, which is shared among all the interests in the adventure.
Marine Insurance Act 1906, section 64: a particular average loss is a partial loss of the subject-matter insured, caused by a peril insured against, which is not a general average loss. The definition is negative, on purpose. Any partial damage to ship or cargo falls into it by default and stays with the affected interest alone. It is otherwise only if someone shows a voluntary and reasonable sacrifice or expenditure made for the common safety of the adventure. Old cargo policies were written free of particular average (FPA): they paid total loss and the general average contribution and nothing else. The Institute C clauses are their softened heir. At claims stage the two regimes part ways. Particular average is handled between assured and underwriter, subject to the deductible. General average goes through an adjustment and makes every shipper post security: on the Maersk Honam, on fire in the Arabian Sea on March 6, 2018, the deposit called for reached 42.5% of value, sound containers included.
The container ship Maersk Honam caught fire in the Arabian Sea on March 6, 2018. The fire destroyed part of the 7,860 containers aboard and killed five crew. The general average declaration required every shipper, including those whose goods were untouched, to post a deposit of 42.5% of value. Particular average would have stayed with the affected owner alone.
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