In partial losses, who bears the loss?

In partial losses, who bears the loss?

• A. Insurer
• B. Cargo owner
• C. Salvor
• D. Government

Answer: (B)

Partial losses, or particular average, occur when only a portion of the insured property is damaged. The burden of that loss falls on the cargo owner (the insured) because the insurance is meant to indemnify against loss up to the policy terms; the insurer pays for the portion of damage covered by the policy, but any part not covered or above the deductible remains the owner’s responsibility. Salvage and general average involve different processes and costs shared among parties, but for a typical partial loss, the cargo owner bears the loss.

Partial losses, or particular average, occur when only a portion of the insured property is damaged. The burden of that loss falls on the cargo owner (the insured) because the insurance is meant to indemnify against loss up to the policy terms; the insurer pays for the portion of damage covered by the policy, but any part not covered or above the deductible remains the owner’s responsibility. Salvage and general average involve different processes and costs shared among parties, but for a typical partial loss, the cargo owner bears the loss.