A partial loss in marine insurance (from French: avarie, damage). In general average (GA). a loss resulting from a deliberate act of the master of the ship (such as throwing overboard all or part of the cargo to save the ship) is shared by all the parties involved, i.e. by the shipowners and all the cargo owners. See AVERAGE ADJUSTER; AVERAGE BOND. In a particular average (PA). an accidental loss is borne by the owners of the particular thing lost or damaged, e.g. the ship. an individual cargo, etc. Cargo can be insured either free of a particular average (FPA) or with average (WA). An FPA policy covers the cargo against toss by perils of the sea, fire, or collision and includes cover for any contribution payable in the event of a general average. A WA policy gives better cover as t also includes damage by heavy seas and sea-water damage. In addition, marine cargo can be covered by an *all-risks policy. See also FREE OF ALL AVERAGES” INSTITUTE CARGO CLAUSES.
A method of sharing tosses in property insurance to combat underinsurance. This is usually applied in an average clausein a fire insurance policy, in which it is stated that the sum payable in the event of a claim shall not be more than the proportion that the insured value of an item bears to its actual value.