A marine insurance can cover for cargos and vessels; the latter is segregated as 'hull and machinery. In marine hull insurance policy can pay for total or partial loss as decided during the time of the policy agreement. It also covers damages and losses to sailing/smaller vessels, tankers, ships, bulk carriers, and fishing boards. As these machineries, devices, equipments, cargos etc. Cost a lot and can incur a lot of financial disruption on damage, it is advisable to get these insured.
The hull & machinery policy is dedicated for port crafts, all types of vessels that are oceangoing, inland/coastal vessels, ship repairers'/charterers' liabilities, shipbuilding construction of vessel, and a lot more. Marine hill insurance coverage also goes to dredgers, pleasure/yard crafts, ship breaking, fishing trawlers/vessels, voyage of freight-at-risks insurance, breaches of voyage cover and warranties, along with fixed pontoons, wharves, pontoons jetties, and jetties in general.
Scope of Marine Hill and Machinery Insurance Policy
- All risks for floating dry docks, freight, vessels, disbursements, ship and jetty owners' interests along with hull and machinery.
- Marine hull insurance policy can cover the excess liabilities, premium reducing, and charterers' hire/freight/disbursements.
- Hull & machinery policy coverage goes to general average disbursements, protection and indemnity liabilities, and other relevant interests required to be insured in India.
The policy does not cover loss/ damage due to:
- Use of war employing nuclear fusion or fission, weapon etc
- Deliberate destruction or damage of vessel by folly of a person
- Strike, riot, war, civil war/commotion
- Any person acting on political intention or terrorist
- Chemical, biological, radioactive contamination, electromagnet, chemical weapons
- Financial or insolvency default by vessel charterer, operator or owner