hull marine insurance
Marine Hull Insurance

Marine Hull Insurance

Marine hull insurance is a type of insurance policy that covers watercraft such as a boat, ship, yacht, fishing boat, steamer, and so on. The body of the vessel is referred to as a hull, and that is exactly what this insurance policy covers. The insurance provides financial protection in the event that the vessel’s body (hull) or machinery are damaged as a result of the hazards covered by the policy.

Marine hull insurance protects boat owners against damage to the hull, machinery, fittings, and freight, as well as risks such as construction and ship-breaking, liabilities, disbursement losses, oil and energy-related hazards, and so on. Yacht insurance, maritime cargo insurance, marine import transit insurance, marine export transit insurance, and marine inland transit insurance policies are all examples of specialized marine hull insurance.

Features of Marine Hull Insurance

Here are a few reasons why you must have marine hull insurance if you are a ship-owner:

  • The dangers of travelling by sea are comparable to those of travelling by land or air. Your ship could be destroyed, lost, or sunk as a result of a fire, robbery, or collision, and the financial loss could be catastrophic because marine vehicles are expensive. Owners of yachts and other pleasure boats, in particular, are in greater danger because their vessels are expensive and do not generate a profit. A marine hull insurance policy, often known as yacht insurance, protects your vessel from sea-related risks.
  • Yacht insurance and marine hull insurance policies also cover damage to other boats and ships caused by your vessel.
  • Marine Hull Insurance can be purchased for a specific period of time or for a specific journey. This means you have the option of insuring your ship or yacht for each voyage or purchasing a comprehensive plan that covers your vessel for a set length of time, such as a year.
  • The sum assured is not a fixed quantity, but rather a value agreed upon by the insurer and the insured. It is usually equal to or close to the cost of the vessel in the issue.
    The amount of premium paid to the insurance company is determined by a number of factors:
    • The kind of vessel
    • The vessel’s age is indicated by the number of years it has been in service.
    • The cost of a vessel is determined by its valuation.
    • The vessel’s tonnage and trade limits
    • The vessel’s management and ownership terms
    • The type of insurance coverage that is required.

Benefits of Marine Hull Insurance

Here are the benefits of Marine Hull Insurance.

1. Is Coverage Comprehensive?

A Marine Hull insurance policy protects your vessel’s hull and machinery from loss or damage caused by a variety of perils such as fire, explosion, robbery, collision, and other ship-damaging events.

2. The plan that is adaptable

You can purchase Marine Hull insurance to safeguard your ship or yacht for a specific journey or to cover your vessel for a specific length of time, usually 12 months, regardless of its voyages.

3. Coverage of Inland Vessels

A Marine Hull insurance coverage can protect inland waterway vessels against a variety of dangers, including collisions, piracy, and the raising, removal, or destruction of wrecks. A ship’s sinking can also be covered.

4. Documentation is simple.

Marine Hull insurance is simple to obtain. The agreed value, which is identical to or about the cost of the vessel to be insured, determines the sum assured for Hull and Machinery insurance.

Important Aspects

When purchasing marine hull insurance, there are a few things to keep in mind. They are as follows:

  • Because the age of the vessel has a significant impact on the insurance cost, it is advisable to obtain coverage as soon as the vessel is purchased.

  • If you think the basic cover isn’t enough, make sure to grab several more.

  • If you want to save money on your premiums, choose a greater deductible.

  • When filing claims, do it as soon as possible to avoid any delays or roadblocks in the payout process.

  • The premium will be determined mostly by the type of vessel, trade limitations, age of the vessel, vessel valuation, and deductible size.

What is Covered Under the Policy?

The interests of a ship’s owner, charterer, ship function, ship breaker, and ship repairer are all covered by a marine insurance policy in general. Marine hull insurance is limited to the Hull & Machinery section, which covers everything held by the ship’s owner, including the ship’s body, machinery, tackle, boats, fittings, equipment, bunkers, engine stores, stores, and provisions for the officers and crew. The insurance policy’s scope may differ from one insurer to the next.

There are 3 main types of Time Clauses under the marine hull insurance policy:

1. Institute Time Clauses (Hull)

This includes risks associated with seas, rivers, lakes, and other navigable waters; property loss or damage due to fire or explosion, stranding or sinking, capsizing or derailment, violent robbery by external elements, jettison piracy, earthquake, volcanic eruption, or lightning; and jettison, piracy, earthquake, volcanic eruption, or lightning; General average, sacrifice, and salvage charges; accident to or failure of lawfully installed nuclear reactors on the ship; loss due to articles falling off aircraft or other boats; damage when installing or equipping at dock or harbour; loss resulting from crew carelessness; pollution hazard; wages, maintenance, and agency commission; 3/4th of collision liability; legal and labour expenditures; and constructive complete loss coverage

2. Institute Time Clauses (FPA)

The free of particular average (FPA) insurance clause is similar to the Hull coverage, except it excludes all mechanical damages. FPA coverage is typically provided when a ship is more than 15 years old, as older vehicles are more likely to sustain damage, particularly on the machinery front.

3. Institute Time Clauses (Total Loss Only)

Only the whole established loss based on real, compromised, or constructive losses are covered by this clause. This type of policy is primarily supplied to very old and huge vessels, and it comes at a reduced rate.


Although marine hull insurance is comprehensive coverage, it does not cover certain situations. These are the cases:

  • The hull and machinery are subjected to normal wear and strain.

  • Nuclear accidents have caused a lot of damage.

  • Contamination with radioactive materials.

  • Damage caused by members of the crew who were under the influence of alcohol.

  • Damage to a vessel that is done on purpose

  • Terrorist activities caused damage to the vessel.

  • Participation in hazardous actions that could result in hull damage.

  • Following the issuance of a warming order, sailing the vessel in a sea storm.

  • Overloading of cargo

How To Claim?

To file a claim on a marine hull policy, the policyholder must produce a substantial amount of documentation. The following is the procedure for filing a claim under the Marine Hull & Machinery Insurance Policy. Most insurance providers follow a similar process.

  • You must notify the Claims Manager or Underwriter whenever an occurrence covered by your insurance policy happens. The insured person should inform the company about the insurance and the loss.

  • A surveyor will be appointed by the company to verify the claim. An important aspect of a marine hull insurance claim is the professional evaluation of losses in the event of a fire, explosion, or other damaging factors.

  • If an occurrence is beyond the scope of a surveyor’s knowledge, a professional consultant may be hired.

  • The surveyor gathers verifiable papers and visual evidence of the loss/damage-causing incident. This includes, among other things, policy or underwriting documents, survey reports, claim intimation letters, deck and engine room logbooks, endorsed receipts of repairs, dry docking, incidental expenses, ship spare part changes, details of how much fuel and engine room stores were used up during the repair period, and the required certificates and endorsements. The insurance company receives all of this information.

  • If the vessel has been involved in an accident, the surveyor will need to gather information about the steps followed to determine liability and the settlement reached between the parties, a full facsimile of the claim filed for recovery against the collision ship, details on all things excluded from the claim by the colliding ship’s owners, legal expense accounts, and a detailed copy of any claim received from the other vessel.

  • Following a preliminary examination of the loss-causing incident, the surveyor would give an Initial Loss Assessment (ILA). The loss amount stated in the ILA is susceptible to alteration based on the surveyor’s subsequent appraisals.

  • The surveyor must clearly identify coverage, salvage value, and the cause of loss.

  • With the support of experts, the surveyor must also develop loss-minimizing alternatives and ensure that as much equipment as possible is working again.

  • Depending on the cause of your insurance claim, you may need to get additional documentation.

  • The insurance company will proceed with the compensation once the surveyor has approved the documentation and claim.

Frequently Asked Questions

Here are the frequently asked questions that you should know;

This word refers to business owners who rent out their vessels. If the ship is damaged for causes not covered by the policy and is unable to be hired, the insurance company covers the loss of income until the damage is properly repaired.

Yes. Ships can be damaged at any time, and ownership has no impact. There have been instances where a vessel was destroyed while docked at a port and was not even sold. If the owner works without insurance in such a situation, he or she will almost certainly incur a significant financial loss.

Once you have bought a term policy, it will remain effective irrespective of the geographical location till its expiry date.

Most policies offer a variety of options from which to pick based on your needs. Here are a few examples: waterskiing liability, sailing club racing, incremental third-party responsibility, waiver of excess, crew cover, charter cover, protection and indemnity cover (all-encompassing liability and crew cover package for the larger yachts with employed crew). It’s also crucial to figure out what will be required so that you don’t overpay for coverage that isn’t actually required.

For boats under 30 feet in length, loss or damage to the boat is automatically covered. Larger boats are covered under the policy if they are transported by a professional transportation business using purpose-built trailers, but you must tell the insurer in advance.