4. Do the Average Adjusters decide how much is due for an insurance claim?

The simple answer is no and yes!

A qualified Average Adjuster prepares a formal Adjustment of the claim under a policy of insurance- this statement is an opinion, based on all the relevant facts and after consultation with Underwriters’ surveyors and such other experts as may be required in the circumstances. However, the opinion of the Average Adjuster does not have the force of law in Canada, nor in most other maritime nations.

The Average Adjustment is generally regarded as an expert opinion of the liability which arises from a marine casualty. As such, it must reflect the specific terms of the contract of insurance between the Assured and the Underwriters as well as the applicable law and practice. The experience and skill of Average Adjusters in dealing with the often complex circumstances of the loss and issues of coverage under the policies will most often result in a statement that is acceptable to all parties.

The Association of Average Adjusters of Canada imposes a code of professional conduct on all its members who must adhere to the practice guidelines established by the Association. These guidelines promote the correct principles of adjustment of marine claims and uniformity of practice amongst Average Adjusters.