General Average Security
The average bond, the underwriter's guarantee and the cash deposit a cargo owner provides before release after a general average declaration.
General average security is what the shipowner requires from each cargo interest before releasing the goods after a general average declaration: typically an average bond, a guarantee from the cargo underwriter, or a cash deposit. Under the York-Antwerp Rules 2016 Rule XXII, cash deposits are held in a special account in the average adjuster’s name, and Rule XXIII extinguishes claims under bonds and guarantees unless suit is brought within one year of the adjustment, and in any case within six years of the end of the adventure.
The full article will cover the forms of security, the effect of underinsurance on the underwriter’s guarantee, the carrier’s lien, and release practice at the discharge port. The cargo insured value article covers how this topic affects the sum insured on a cargo policy.