Marine & Transit Insurance
Marine Hull Insurance
Marine Hull Insurance provides coverage for physical damage or loss of a ship, vessel, or boat due to accidents, perils at sea, or unforeseen events. It is primarily designed for shipowners, shipping companies, and vessel operators to protect their assets and maintain operational stability.
This insurance typically covers commercial vessels, fishing boats, cargo ships, tankers, yachts, and other watercraft.
Why is Marine Hull Insurance Essential?
- Protection Against Costly Damages
- Coverage for Accidents & Collisions
- Compliance with Maritime Laws
- Ensures Business Continuity
- Customizable Coverage
Important Things You Should Note
- Hull & Machinery (H&M) Coverage
Covers physical damage to the ship’s hull and machinery due to insured perils. - Institute Hull Clauses (IHC)
Standard policy clauses define the extent of coverage under different scenarios. - Third-Party Liability (P&I Insurance)
Covers damage to other vessels, docks, cargo, and crew injuries (often bundled with Hull Insurance). - Deductibles & Policy Limits
Policies have deductibles, meaning shipowners must bear a portion of the loss before insurance pays out. - Survey & Maintenance Requirements
Regular vessel surveys and maintenance are required to ensure claims aren’t denied due to negligence.
What is Covered & What is Not Covered?
What is Covered?
- Damage Due to Accidents – Covers collisions, sinking, capsizing, grounding, and explosions.
- Fire & Natural Calamities – Includes fire, storms, lightning, tsunamis, and cyclones.
- Theft & Piracy – Covers loss or damage due to piracy or hijacking (if included in the policy).
- Machinery Breakdown – Provides protection against engine, boiler, or machinery failure.
- Towing & Salvage Costs – Covers expenses for emergency towing, rescue, and salvage operations.
What is Not Covered? (Exclusions)
- Wear & Tear – Natural aging and depreciation of the vessel are not covered.
- Negligence & Mismanagement – Losses due to poor maintenance or crew misconduct are excluded.
- War & Terrorism – Damages caused by war, strikes, and terrorism require additional coverage.
- Nuclear or Chemical Contamination – Damage due to radioactive contamination or biohazards is not covered.
- Intentional Acts & Fraud – Losses caused by deliberate damage or insurance fraud are excluded.
Frequently Asked Questions (FAQs)
Who needs Marine Hull Insurance?
Shipowners, shipping companies, fishing fleets, cruise operators, and oil & gas marine operators.
How is the premium calculated?
Based on vessel type, age, condition, value, trading routes, and previous claim history.
Can Marine Hull Insurance cover crew injuries?
No, but a separate Protection & Indemnity (P&I) insurance covers crew liability and injuries.
What happens if my vessel is declared a total loss?
The insurer will compensate based on the agreed value or market value, depending on the policy terms.
Does Marine Hull Insurance cover piracy?
Not by default, but shipowners can purchase additional War & Piracy coverage.
