The purpose of the study, which is a part of the Master Mariner's degree, is to present the scope of duties of the Average Adjuster in Finland (“Merivahingonlaskija” in Finnish; “Dispaschör” in Swedish,) in accordance with Chapter 16 of the Maritime Act, which entered into force on 1 July 2021 in Finland because the law reform replaced the previous provisions and regulation of the Maritime Act concerning the Average of Adjuster in Finland.

According to the provisions of Chapter 16a of the Maritime Act, the Average of Adjuster is considered same as the District Court’s Judge in Finland, and the Average of Adjuster’s duties is to draw up an indemnity adjustment based on marine insurance on application by insured parties or insurers which is the first legal instance in Finland.

Based on a government proposal (264/2020) for Chapter 16a of the Maritime Act the in-demnity adjustment procedure run by the Average of Adjuster is defined as so-called legal arbitration, in which the procedure must be prepared in accordance with the provisions of the Arbitration Act (23.10.1992; VML) which is applied in contractual relations if so agreed. However, Chapter 16a of the Maritime Act does not provide for, nor does the government proposal (264/2020) how to deal with these different legal proceedings. Thus, the study presents these different procedures and analyzes the dimensions of the law reform.

Pursuant to Chapter 16a of the Maritime Act, the Average of Adjuster is also required to prepare the indemnity adjustment on marine insurance based on a boat insurance if the insurance has been taken out for a boat in business use by a policyholder or assured party. The government proposal (264/2020) does not clearly define to the concept of business use or direct the Average of Adjuster to evaluate which economic activity is in the scope of the business and what is meant by the business or commercial activity in general. Thus, the study tests the topic of the concept of business activity and presents the concept based legislation and case law on Corporate Income Tax Act (24.6.1968 / 360; EVL).

Chapter 16a of the Maritime Act repeals the Decree (121/1936) on the fee of the Average of Adjuster, as amended. The government proposal HE (264/2020) justifies only that the basis for the reasonable fee is hourly rate applied also in the main profession of the Average of Adjuster for his or her duties without further justification. This is a major change with the Average of Adjuster’s fee policy, which was valid for past one hundred years, therefore the study analyzes the Average of Adjuster’s fee must be based on the value and extent of the interest on the duty.