In Ocean Marine insurance, which clause assigns the loss to one company instead of distributing it among all cargo owners?

In Ocean Marine insurance, the Particular Average clause is significant because it pertains to the treatment of losses that affect only part of the cargo rather than the entire shipment. Under this clause, losses are borne by the owner of the cargo that has sustained damage. This means that if one specific item or portion of the cargo is damaged or lost, the financial burden of that loss is assigned solely to its owner rather than being shared amongst all cargo owners.

This distinguishing feature is critical in marine insurance, as it allows for more precise accounting and risk management related to individual cargo items rather than a collective pool. Under the General Average clause, on the other hand, any extraordinary sacrifice made for the common safety of the entire voyage may require all stakeholders to share in the loss, thus distributing the risk. Understanding these concepts is essential for managing claims and understanding obligations in maritime operations.