Archive · 22 Aug 2025
Understanding the 'Jettison' Clause in Marine Insurance
Imagine a ship at sea faces a big storm or has problems with its cargo.
The "jettison" clause in insurance lets the crew throw cargo overboard to save the ship and everyone on it.
This is only done in emergencies.
If cargo is thrown out, the owner can get money back from the insurance.
However, all owners on the ship share the cost, not just the ones who lost cargo.
An adjuster figures out how much everyone pays.
This clause helps manage risk and makes sure everyone is treated fairly.
Jettison is a marine insurance clause allowing cargo to be thrown overboard to save the ship and crew.
It applies in emergencies like severe weather or cargo issues threatening the vessel.
When jettison occurs, the cargo owner can claim compensation for losses.
Losses are shared proportionally among the cargo owners, ship owners, and insurers.
The jettison clause facilitates risk management, clarifies guidelines, and ensures fair compensation.
- Who
- The ship owner or carrier decides to jettison cargo.
- What
- Jettison is a marine insurance clause allowing cargo to be thrown overboard in emergencies to save the ship, crew, and passengers.
- When
- Jettison is used during emergencies like extreme weather conditions, or when cargo poses a threat to the ship.
- Where
- Jettison occurs on ships at sea.
- Why
- Jettison is necessary to protect the ship, crew, and passengers from imminent dangers.
- What is Jettison?
- A clause in marine insurance.
- Purpose of Jettison
- To protect the ship, crew, and passengers from danger.
- Coverage
- Covered under marine insurance, allowing cargo owners to claim compensation.
- Loss Sharing
- Shared proportionally among cargo owners, ship owners, and insurers.
- Compensation Determination
- An adjuster is appointed to determine the compensation amount.