What is the average agreement?

Average agreement is a type of insurance that is often used for goods that are transported through water bodies. This specific type of agreement or provision within the insurance contract itself, which is commonly associated with maritime insurance, is introduced by the carrier of the goods to choose the premiums, which is equal to the specified percentage of the total value of the consignment. Together with others involved in the shipping and delivery process, this approach determines the basis for what is called general average coverage, which effectively protects the sender if the goods supplied are lost, stolen or damaged at a certain point of transfer.

with the average agreement, the insurance company that provides coverage has undertake to honor the demands up to the maximum amount, if they result from some type of activity that leads to loss or damage to the goods on the way to the recipient. This includes situations in which part of the ship is intentionally sacrificed to save the rest. The same information regarding the value of the goods usedTo determine the premium paid by the carrier, they will also be used to determine the maximum amount of coverage provided according to the conditions of the general average clause within the Maritime Insurance Agreement.

with an average agreement, losses resulting from damage or theft are kept under control. Even in the case of catastrophic situations, this approach helps to ensure that the loss eventually deal with those involved in the process of transporting goods. For example, if the Captain of a delivery ship bearing 60 containers considered to be necessary to pack 30 of these containers for the purpose of protecting the ship and the remaining cargo, all parties involved in the average agreement would contribute to cover part of the value of this lost cargo, including ship owner and owners of all transport.

Using an average agreement in the framework of sea insurance coverage carried out on goods delivered through various waterways is relativecommon. Many providers offer this scope of coverage and ranges on the benefits offered in various plans. As with any type of insurance coverage, prices and conditions with several different insurance providers are likely to bring several benefits and provisions that are in line with the needs of the sender.