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P&I (CLASS 3) / PART III / RULE 19 RISKS COVERED / 19.18 General Average
19.18.1 Ship’s proportion of general average
The Entered Ship’s proportion of general average expenditure (including salvage) and sue and labour expenses not recoverable under the Hull Policies by reason of the value of the Ship being assessed for contribution to general average or salvage at a sound value in excess of the insured value under such policies. The Board (or, in the case of claims not exceeding USD2,000,000, the Committee) shall determine whether the Entered Ship was insured for a proper value under the Hull Policies on that Ship. If the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) determines the amount actually insured to be less than the proper value, the Member shall only be entitled to recover the excess of such proper value.
19.18.1.1 Note: In determining whether the Ship was insured for a proper value the Board (or, in the case of claims not exceeding USD2,000,000, the Committee) will need to be satisfied that the said policies have been the subject of periodic review in the light of proper advice on market conditions. A proper value will be a figure which is reasonably close to the equivalent of the free uncommitted market value of the Ship at the time of the general average act.
19.18.2 Unrecoverable general average contribution
The cost to the Member of that proportion of general average expenditure (including salvage) and special charges which should be paid by cargo or by some other party to the maritime adventure, but which are not so paid after the exhaustion of all legal remedies against such parties solely by reason of a breach of the contract of carriage. Subject always to provisos 19.17.8.1, 19.17.8.2, 19.17.8.3 and 19.17.8.7 insofar as they are capable of application.
19.18.3 PROVIDED ALWAYS THAT:
General average shall be adjusted according to the York-Antwerp Rules 1974, 1994 or 2016 or on other contractual terms approved by the Managers. If it is not, then any recovery from the Association shall be limited to what would be recoverable if general average were adjusted according to the law and practice of the place where the adventure ended.