Class 1 (Chief Engineer) Engineering Management 📅 Jul 2024

Exam Question

(a) What is the New Jason Clause, and how does it protect shipowners in cases of general average? Discuss the implications of this clause for both shipowners and cargo owners in the event of a maritime emergency. (8)

(b) Explain the 3/4ths Collision Clause in marine insurance and discuss its implications for both the insurer and the shipowner. How does this clause influence the behaviour of shipowners in terms of risk management and vessel operation. (8)

Reference Answer

### Part (a): The New Jason Clause (8 Marks)
#### 1. Definition and Purpose
The New Jason Clause is a contractual provision inserted into bills of lading and charter-parties. Its primary purpose is to permit a shipowner to claim contributions in General Average (GA) from cargo interests, even when the peril that necessitated the GA sacrifice or expenditure was caused by the negligence of the shipowner's servants (e.g., master, crew) in the navigation or management of the vessel.
This clause is essential primarily under U.S. law, specifically due to the Harter Act of 1893. Without this clause, U.S. courts would bar a shipowner from recovering GA contributions if their negligence caused the incident, even if they had exercised due diligence to make the vessel seaworthy.

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