General average and particular average losses are both marine insurance terms which are classified as partial losses. General Average is a loss which is caused by or directly consequential on a general average act. Particular average losses are partial and unforeseen loss accidentally incurred by sea perils.
Difference between General Average Loss and Particular Average Loss –
(1) General average is incurred for the benefit of all interests but the particular average is in connection with any of the interests.
(2) General average is always voluntary and intentional but the particular average is accidental or fortuitous.
(3) General average is shared by all those who are benefited by the general average act. The particular average is paid by the insurer.
(4) The general average may include expenditure and sacrifice along with loss, whereas the particular average results from a loss or damage.
(5) General Average Loss is a voluntary and deliberate loss. Particular Average Loss is purely accidental and unforeseen loss.
(6) The cause of General Average Loss cannot be insured. The cause of Particular Average Loss can be insured.
(7) In General Average Loss the loss shall be shared by all the owners of cargo. Particular Average Loss falls entirely upon the owner.
(8) The particular average loss is a partial loss or damage caused to any particular cargo or property where the damage is suffered by a particular interest. The general average loss, on the other hand, refers to a loss that directly affects two or more interest in a common marine adventure, unlike particular average loss which affects a particular interest only.