Marine Hull Insurance

Marine Hull Insurance offers protection to shipowners against loss or damage to their ships. However, other parties such as charterers, shipbuilders, bankers / financiers etc. can also cover their interests under various types of insurances.

Types of Policies

Shipowners’ Interest 

Hull and Machinery (H&M) Insurance: Covers the body of the ship or her hull, machinery, tackle, ordinary fittings required for trade, and other necessary equipment. The policy covers damage to the vessel arising from various factors such as perils of the sea, crew negligence, machinery breakdown, General Average and Salvage etc. Basically the hull policy is as per the standard English clause under the ITC Hulls.

Subsidiary Interests Insurance: Usually refers to freight and disbursements insurance. Freight is the profit a shipowner makes from employing his ship. Disbursements include the expenses for fitting out of a ship for a voyage, which may include the cost of provisions and stores made available on board the ship, port dues, expenses of loading / unloading at the port of call and the like.

War Risks Insurance: War and related perils are “Paramount Exclusions” under a regular hull insurance plan, but these can be insured separately. Most ship owners opt for the GIC Re’s War Risks Scheme (called Hull War Risks Insurance Scheme of Government of India, 1976). The sum Insured for war risks insurance must be the same as the sum insured under H&M, and Freight and Disbursements interests.

 Please refer to the policy document for the complete scope of cover and list of exclusions and other terms and conditions under the policy.