An insurance loss that affects specific interest only. There are two kind or particular average losses: the total losses of a part of goods, and the arrival of goods at destination in damaged condition.
- Total loss: in this situation, it is necessary to determine how much of the total amount insured is applicable to the missing item. In homogeneous or fungible cargo – that is, cargo which is capable of mutual substitution, like oil or coal – is frequently a matter of simple arithmetic.
- Arrival in damaged condition: the method of calculation is slightly different. The value of the insurance is divided by the number of units in the expected arrived quantity rather than the shipped quantity. This can be determined either by the normal percentage of trade loss for similar shipments or by examinations of sound arrived cargo forming part of the shipment in question.