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Insurance

General average clause

In the world of finance, we often come across terms that may seem confusing or unfamiliar. One such term is the "general average clause" in ocean marine insurance. This clause requires parties other than the insured to share in the losses suffered by the insured due to the voluntary and necessary sacrifice of freight caused by shipping perils. It is important to understand this term as it can have a significant impact on the insured's financial protection. Let's delve deeper into what this clause entails.
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