WAEC Commerce 1996 Question 36

Question 36

Insurance

In marine insurance, the deliberate throwing of some goods into the sea to prevent the ship from sinking is an example of

  1. A.a constructive total loss
  2. B.a partial loss
  3. C.a general average loss
  4. D.a total loss
  5. E.an actual total loss
Show the answer and explanation

Answer: C (a general average loss)

Explanation

Goods sacrificed (jettisoned) to save the ship are a general average loss shared by all parties.