In Ocean Marine insurance, which clause appropriates the loss to one company rather than spreading the loss among all cargo owners?

The correct answer is related to the concept of Particular Average, which is a term used in marine insurance to designate losses that are specific to an individual vessel or cargo. Unlike General Average, which involves contributions from all parties to share a loss incurred for the common safety of the voyage, Particular Average applies specifically to losses that impact only a specific cargo or vessel.

Particular Average is relevant when a specific portion of the insured cargo is lost or damaged, allowing the insured party to claim for the individual loss without affecting the other cargo owners. This clause ensures that the financial burden is not distributed among all cargo owners, but rather, it is appropriately assigned to the individual whose cargo has suffered the loss.

In contrast, General Average would require contributions from all parties with interests in the voyage when a sacrifice has been made for the common good, thereby not isolating the loss to a single owner. The Average Clause and Loss Agreement are terms that encompass broader principles within marine insurance, but they do not specifically address the allocation of loss to an individual party like Particular Average does. Understanding these distinctions is key to grasping how marine insurance operates and the responsibilities involved in marine risk management.