Marine Hull Insurance

The policy generally covers accidental and unforeseen damage such as collision with another vessel or object, grounding, heavy weather, fire, explosion, sinking, and certain machinery damages depending on the policy terms. Some policies may also include piracy or theft while the vessel is in operation.

Marine Hull Insurance does not cover normal wear and tear, gradual deterioration, corrosion, lack of maintenance, intentional damage, or operation outside agreed navigation limits. War risks and similar perils are usually excluded and must be covered under a separate war risk policy.

No. Hull insurance only covers damage to the vessel. Crew liabilities are handled under Protection & Indemnity (P&I) or crew insurance, while goods being transported are covered under Marine Cargo Insurance.

Premium depends on factors such as the vessel’s value, age, type, usage, operating area, maintenance condition, and past claims history. Higher-risk operations or older vessels generally attract higher premiums.

While not always legally compulsory, ports, financiers, charter contracts, and regulatory authorities almost always require hull insurance before allowing a vessel to operate, making it practically essential for maritime business.

In the event of an accident, the insured must immediately notify the insurer, take reasonable steps to prevent further damage, and arrange a surveyor inspection. After submitting documents such as incident reports and repair estimates, the insurer evaluates the loss and settles repair costs or total loss compensation as per the policy terms.