GENERAL AVERAGE – A maritime legal principle, separate and apart from marine insurance, whereby all parties to an adventure, who benefit from a sacrifice or expenditure incurred in preserving an emperilled adventure, must each contribute rateably to make good the amount sacrificed or the expenditure incurred.

GENERAL AVERAGE ADJUSTMENT – The adjustment drawn up by the appointed Average Adjuster
indicating the proportions of the interested parties. It is a complex process and may take several years to prepare.

GENERAL AVEARGE DEPOSIT RECEIPT – A receipt issued by a shipowner to the payer of a general average deposit, giving details of the interest and contribution due.

GENERAL AVERAGE EXPENDITURE – Expenditure incurred by the shipowner in connection with a general average act such as the hiring of tugs to free a stranded vessel or to tow it into port.

GENERAL AVERAGE GUARNTEE – A guarantee to the shipowner in writing from an insurer, bank or other party, to pay the amount of the adjusted contribution of the cargo owner.

GENERAL AVERAGE SACRIFICE – The sacrifice of property exposed to risk in a maritime adventure, in time of peril, for the purpose of preserving the remainder of the interests from a total loss.

GERMANISCHER LLOYD – A German vessel classification Society.

GRACE PERIOD – A period after the premium due date, during which an overdue premium may be paid without penalty. The policy remains in force throughout this period.

GROSS REGISTERD TONNAGE – The tonnage of a ship as registered before deduction of light and air spaces, machinery and navigating spaces and other parts of the vessel to arrive at the net registered tonnage.