Differences between General Average Loss and Particular Average Loss

1. Types of Loss

General Average Loss is an extraordinary loss incurred to preserve the common interest. Particular Average Loss is partial loss accidentally insured by sea perils.

2. Type of situation

General Average Loss is a voluntary and deliberate loss. Particular Average Loss is purely accidental and unforeseen loss.

3. Possibility of insurance

The cause of General Average Loss cannot be insured. The  cause of Particular Average Loss can be insured.

4. Effect

General Average Loss affects general or common interest, hence termed general average. Particular Average Loss involves only particular property or interest.

5. Reasonableness

General Average Loss must be reasonable and prudent. There is no such condition for Particular Average Loss.

6. Nature of Loss

General Average Loss is an extraordinary character of general nature. Particular Average Loss is of ordinary character and of particular nature.

7. Sharing of Loss

In General Average Loss the loss shall be shared by all the owners of cargo. Particular Average Loss falls entirely upon the owner.