Hull Insurance, which we used to know as Hull and Machinery, is a type of insurance that provides guarantee on the damage/loss of hull and its equipment.
1. Hull and Machinery: insurance for hull and machinery and or its equipment.
2. ¾ Collision Liability: insurance against any claim or liability from third party caused by bump or ship collision. General Average: insurance against general average costs when an accident happened to the ship.
Institute Clause Hulls 1/10/83 Cl.280)
Hull and Machinery Insurance covers:
1. Dangers from the sea, river, lake or any other waterways.
2. Fire, explosion
3. Theft with violence committed by people from outside the ship.
4. Disposal to the sea
6. Damage or accident that comes from the installation/nuclear reactor.
7. Collision with aircraft or any similar object or hit by fallen object from the aircraft, collision with land transport, pier or port installation/equipment.
8. Earthquake, volcano eruption or lightning strike.
9. Accident occurred during the loading, unloading cargo or fuel.
10. Boiler is exploded, shaft is broken or any hidden defect in the machinery or hull.
11. Negligence of the captain, employee, crew or pilot.
12. Negligence of the Repairers or charterer with condition that the Repairers or charterer is not the Insured in the policy.
13. The ship is taken over by the captain, staff or crew of the ship.
With condition that the loss or damage is not purposively committed by the Insured, Owner or Manager.
Total Loss Only:
- Institute Clause Hulls 1/10/83 Cl. 289 (including salvage, salvage charges and sue and labour)
- (Institute Clause Hulls 1/10/83 Cl. 284 General Average and ¾ collision liability (289 including salvage, salvage charges and sue and labour)) with additional coverage of General Average Costs and ¾ Collision Liability.
The cause of loss which is insured in this policy is the same with the one given in the policy (Institute Clause Hulls 1/10/83 Cl.280) but with additional condition of total loss only, which means that the insurance shall be in effect when the ship experiences total loss entirely so it may not be operated normally.
Actual Total Loss:
The ship is sinking, destroyed, burned, or lost.
Constructive Total Loss:
The ship experiences loss and the cost of repair or cost of recovery exceeds the sum insured