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General average

Chapter XIV
GENERAL AVERAGE

Article 213.- General average
1. General average means extraordinary sacrifices or expenditure intentionally and reasonably made or incurred for the common safety for the purpose of preserving from a common peril the vessel, cargo, luggage, freight or passage money for the carriage of passengers.
2. Only losses, damage and expenses which are the direct consequence of the general average act may be accounted as general average.
3. All losses, damage and expenses which are related to damage to the environmental or the consequence of the leakage or discharge of pollutants from the property on board the vessel during its voyage shall not be accounted as general average in any circumstance.
4. Demurrage money and any loss or damage incurred or expenses paid for delay during or after the voyage and any direct damage shall not be accounted as general average.
5. Extra expenses in excess of the necessary expenses which would have been accounted as general average, but only within a reasonable limit on a case-by-case basis.

Article 214.- Apportion of general average
1. General average shall be apportioned in proportions between the value of the loss resulting from the action causing general average and the value saved at the place where and time when the vessel calls immediately after the general average occurs.
2. The provisions of Clause 1 of this Article shall be also applied to the case where the peril has been due to the fault of any party with interests in the general average or a third party.
3. The apportionment of general average shall not preclude the right of any involved party to claim compensation from the party at fault.
4. The principles applicable to a detailed adjustment of the loss value and contribution value shall be agreed by the parties in the contract. In the absence of such agreement, adjusters shall settle in accordance with the provisions of this Chapter and international custom.

Article 215.- Apportion of general average to cargoes loaded on board without permission
Any loss of the cargo loaded on board without permission or wrongly declared in terms of its kind and value shall not be accounted as general average; however, such cargo, if saved from a common peril, shall be subject to a corresponding contribution value.

Article 216.- Particular average
Any loss of or damage to the vessel, cargo luggage, freight and passage money for the carriage of passengers which is not allowed to be accounted as general average under the provisions of Article 213 of this Code shall be referred to as particular average. Those who suffer from such loss or damage shall not be entitled to compensation unless he/she proves that such loss or damage has been caused by another party’s fault.

Article 217.- Declaration of general average and appointment of general average adjusters
1. The identification of a general average, the assessment of the amount of general average and its apportionment shall be carried out by general average adjusters appointed by the shipowner.
2. The shipowner is the only person entitled to declare a general average and shall appoint his/her general average adjuster within thirty days after the date of declaration of general average occurrence.

Article 218.- Statute of limitations for initiation of lawsuits regarding general average
The statute of limitations for initiation of lawsuits regarding general average is two years as from the date of occurrence of general average. The period for apportion of general average shall not be counted in this statute of limitations.