AVERAGE ADJUSTER Meaning and
Definition
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An average adjuster refers to a professional who is tasked with determining and settling claims involving maritime accidents or losses. This individual specializes in matters pertaining to General Average, which refers to the principle of distributing the financial burden of losses incurred during a maritime voyage among all parties involved. The role of an average adjuster is to assess the claim, calculate and apportion the financial liabilities, and facilitate the fair and just settlement among affected parties.
Average adjusters possess specialized knowledge and expertise in maritime law, insurance, and mathematics. They are well-versed in the intricacies of interpreting complex marine insurance policies and applying the principles of General Average. Their assessments consider various factors, such as the value of the cargo, the nature of the loss, any salvage efforts, and the terms outlined in the insurance policy. The process typically involves negotiating and liaising with ship owners, cargo owners, insurers, and other stakeholders to ensure an equitable resolution.
In addition to their technical skills, average adjusters must exhibit integrity, impartiality, and strong communication skills. They play a crucial role in maintaining trust among involved parties and in upholding the principles of fairness and equity. Their work is vital for fostering stability and confidence in the maritime industry by ensuring that losses are distributed fairly and claims are settled in accordance with internationally accepted standards.
Etymology of AVERAGE ADJUSTER
The term "average adjuster" originates from the field of marine insurance. The word "average" in this context refers to the distribution of costs among interested parties in case of a marine loss or damage. It comes from the Middle English word "avarie", which is derived from the Old French term "avarie" or "averie". The Old French term itself is derived from the Arabic word "averia", which means "damaged goods" or "ship's equipment".
The word "adjuster" in "average adjuster" refers to a person or entity responsible for calculating and apportioning the financial costs and liabilities resulting from a marine loss or damage. The word "adjuster" is derived from the verb "adjust", which comes from the Old French term "ajuster", meaning "to make right" or "to bring into alignment".
