A navigation error caused a cargo ship to run around on a reef. The ship, valued at $1.5 million, was carrying $1.5 million in grain and $1.5 in electronic devices. The ship sustained $150,000 in physical damage. If this loss is a “particular average” loss, how will the loss be settled?

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A navigation error caused a cargo ship to run around on a reef. The ship, valued at $1.5 million, was carrying $1.5 million in grain and $1.5 in electronic devices. The ship sustained $150,000 in physical damage. If this loss is a “particular average” loss, how will the loss be settled?

Options

A) the owners of each of the three interests are responsible for $50,000
B) the owner of the ship is responsible for the entire $150,000 loss
C) the two cargo owners are each responsible for $75,000 of the loss
D) the owner of the ship is responsible for the first $100,000 of the loss, and the two cargo owners are each responsible for $25,000 of the loss

Answer: B

The above question A navigation error caused a cargo ship to run around on a reef. The ship, valued at $1.5 million, was carrying $1.5 million in grain and $1.5 in electronic devices. The ship sustained $150,000 in physical damage. If this loss is a “particular average” loss, how will the loss be settled?, Was part of Insurance MCQs & Answers. I hope you got the correct answer to your question. Have a great time ahead.