Class 1 (Chief Engineer) Engineering Management 📅 Oct 2025

Exam Question

(a) Discuss the concept of general average with the principles underlying general average and contribution among parties involved in a maritime venture. (8)

(b) Provide examples of scenarios where general average might be declared, highlighting the criteria and conditions necessary for its application in modern maritime commerce. (8)

Reference Answer

### (a) The Concept, Principles, and Contribution of General Average
#### 1. Concept of General Average
General Average is a long-standing principle of maritime law that governs the proportional sharing of losses resulting from voluntary actions taken to preserve a common maritime venture (ship, cargo, and freight) from an imminent peril. When an extraordinary sacrifice or expenditure is intentionally and reasonably made for the common safety of all interests involved, the resulting loss is not borne solely by the party whose property was sacrificed but is shared amongst all beneficiaries of that act.
The governing framework for General Average is predominantly the **York-Antwerp Rules (YAR)**, with the current version being YAR 2016. Rule A of YAR 2016 defines a General Average Act as follows:

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