If, for example, a portion of the cargo has to be sacrificed to save the ship, the loss does not fall exclu sively upon the owner of that part of the cargo which has been thrown overboard. It is shared in propor tion to their interest, by all who have a stake in the success of the voyage—the owners of the remainder of the cargo, the shipowner and, if the ship has been chartered, the charterer.
The loss may result from the cutting away of the mast of the vessel or from the sacrifice of some other part. On the Pacific coast of South America, for in stance, where harbors are scarce, a vessel may put to sea when a gale arises rather than remain near the shore where she is loading or unloading. The storm may arise so suddenly that there is no time to raise the anchor, and the cable may be cut and lost with the anchor. This is a loss under general average, and would be divided among the three interests, just as a more severe loss would When marine insurance came into use it took over the principle of average. It assumed that the prop erty would be insured for its full value, but if it should not be, then the interested party would be liable to contribute toward any loss in addition to the insur ance.
18. Particular somewhat contra dictory terms, particular average, are used to describe a loss which may happen to an individual interest only when no sacrifice is made for the benefit of all. A vessel may be unfortunate enough to have an anchor and cable washed overboard during a heavy gale. No sacrifice has been made, and the ship alone is the loser. The accident is a part of the voyage.
Again, a shipper may have his cargo stowed in the very bottom part of the vessel, and owing to a leak his portion of the cargo may be damaged, but no dam age to a6T other part of the cargo may result. This is a particular and individual loss. In the days be fore insurance was known, the individual, in such a case, was obliged to sustain the loss alone; now, how ever, he may protect himself by means of insurance.
19. word "salvage" has two mean ings. It denotes, on the one hand, a compensation allowed to persons by whose voluntary exertions the vessel, or the cargo or lives on her are protected in case of wreck, capture or other marine adventure. On the
other hand, the word also means that which is saved from a wreck or an abandoned vessel. Compensation for saving and the thing which is saved are both called salvage.
20. How the conditions in the policy are changed.— While the body of the policy has not been changed for over a century, the same effect has been reached by means of various clauses that have been added from time to time, or of particular clauses that are intro duced into a risk.
The cost of insurance may be reduced by a clause which states that the property is "free of particular average." In such case the underwriter is relieved of any liability for damage or partial damage to the property except in the case of total loss and general average contribution. This -condition, expressed by the phrase "free of particular average," is modified in most cases by the words, "unless the vessel be stranded, sunk, burned or in collision." The common rule in regard to all printed policies, that if a written clause or an additional clause is added it shall take precedence, applies in the case of the ma rine insurance policy. Thus, the war risk was elim inated by some such agreement as the following: Warranted by the assured free from claim on account of capture, seizure, detention or destruction by or arising from hostile forces, civil commotions, riots, or by the acts of officers or other persons acting in the name of belligerents, or in pursuing warlike operations whether before or after declaration of war.
Another illustration of the use of a clause for a spe cific purpose is the following: Warranted by the assured not to be loaded in excess of her registered tonnage with either lead, marble, stone, coal or iron; and if loading with grain, warranted to be loaded under the inspection of the Surveyor of the Board of Under writers, and his certificate as to the proper loading and sea worthiness obtained.
21. Kinds of time policy is one which insures a vessel for a specific time, generally for one year. In Great Britain no policy may be issued for a longer period, but this rule does not apply in the United States.