A General Average incurs costs in advance for a ship owner in case a voluntary sacrifice is rendered to rescue a ship and cargo.
Although the ship owner has the right to claim allowance from non-ship interests, the reimbursement may be delayed. These payment delays increase the cost positions as well as the administrative costs. No matter if it is the consequence of a storm, a nautical fault or a technical defect – the risk of payment defaults will remain with the shipowner and a crisis will become more expensive because of delayed settlement. CCP hence provides the funds to decrease the overall GA costs, provides liquidity to swiftly handle a GA incident and the risk of default payments remains with the insurer.
Cargo Contribution Protect provides certainty that the shipowner will immediately be reimbursed for advance payments in case of a General Average. Insured are only the contributory values payable by cargo (non-ship) interests, so that the ship owner is provided with financial resources easily and without delay through an instructed Average Adjuster. Thusly shipowners can quickly receive funds from insurers to cover the proportion of general average disbursements of non-ship interests according to the York-Antwerp Rules.