What Is General Average in Maritime Insurance?

General Average is a clause in Maritime insurance, which is defined under section 66 of the Marine Insurance Act 1963. A General Average in Maritime Insurance is a ‘sacrifice’ made by the assured in order to prevent the insured articles from getting damaged. The sacrifice of goods must be made voluntarily and reasonably to preclude the more significant cause. General Average loss rarely takes place. However, when it occurs, an insured may lose millions of dollars of cargo and the vessel while protecting human life.