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Why has general average been criticized despite its long history?
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Maritime law
Justinian I, detail of a mosaic, 6th century; in the Basilica of San Vitale, Ravenna, Italy.
While general average is a principle with an ancient lineage dating back to Roman law, it faces contemporary criticism and calls for abolition.12
The primary arguments against the doctrine include:
- Administrative Costs: The accounting and procedural expenses required to administer a general average claim are frequently disproportionate to the actual value of the property involved.2
- Redundancy in Insurance: In many modern shipping ventures, the same underwriters often provide coverage for both the ship's hull and the cargo. When the same entity insures all interests, the complex process of calculating and redistributing contributions among different parties becomes largely redundant.2
Despite these criticisms, the doctrine remains a universally accepted component of maritime law, ensuring that losses incurred voluntarily to save a voyage from total destruction are shared proportionately among all stakeholders.132