MARINE HULL INSURANCE
PRESENTATION BY GAYATHRI IYER FACULTY NIA
LOSSES ENCOUNTERED BY VESSELS
Damage to the
Damage to the
cargo on the Wreck removal Collisions
ship
ship
Damage to FFO
Non Contact Pollution
(Fixed and Salvage and GA
damage liabilities
Floating objects)
Towage
Covered by Hull and
COVERAGES Machinery Policies
Covered by P & I
Clubs
LIABILITIES TO THE OTHER SHIP
Details P&I H&M
Ship Damage 1/4 3/4
Detention 1/4 3/4
Property on other ship 1/4 3/4
Cargo on other ship 1/4 3/4
General Average 1/4 3/4
Salvage charges 1/4 3/4
Personal Injury 4/4 -
Pollution 4/4 -
LIABILITIES/DAMAGES TO OWN SHIP
Details P&I H&M
Ship Damage - 4/4
Wreck removal -
4/4
Property outside the ship 4/4 -
Cargo on ship 4/4 -
General Average - 4/4
Salvage charges - 4/4
Personal Injury 4/4 -
Pollution 4/4 -
PROTECTION AND INDEMNITY
• protection and indemnity insurance, (“P&I insurance”), is a form of marine
insurance provided by a P&I club. A P&I club is a mutual (i.e. co-operative)
insurance association that provides cover for its members, who will typically be
ship-owners, ship-operators or demise charterers. Unlike a marine insurance
company, which is answerable to its shareholders, a P&I club is the servant only
of its members.
P&I insurance is primarily intended to cover a
shipowner’s or operator’s liability towards third
parties and it generally excludes damage to the
DIFFERENCE insured’s own property or direct loss of the
Company.
Hull and Machinery insurance is basically
insurance of the client’s vessel as its primary
asset. The two types of insurance interact in the
area of collision liability and liability for contact
damage to third party property.
• Hull and Machinery insurance and P&I insurance
are often complementary when it comes to
collision liability and liability for damage to
COMPLEMENTARY piers, loading cranes and other third party
property, generally known as damage to fixed
and floating objects (FFO).
The Institute Time Clauses Hulls – Port
Risks Clauses covers many more types of liability than
would be normal in the usual hull and machinery
clauses and is rather a combination of a hull policy and
DIFFERENCE protection and indemnity insurance (known as P & I)
policy.
BETWEEN ITC
HULLS AND ITC As P & I cover is only available for larger vessels, it is
essentially concerned with small vessels such as
PORT RISKS harbour tugs, launches, pilot vessels, tenders and the
like, which are not seagoing and carry no cargo and
are unlikely to do so because of their small tonnage,
are unlikely to incur large liabilities to other parties.
9.1.1 loss of or damage to any fixed or movable
object or property or other thing or interest
whatsoever, other than the Vessel, arising from
CLAUSE 9 OF any cause whatsoever in so far as such loss or
damage is not covered by Clause 7
PORT RISK
9.1.2 any attempted or actual raising, removal or
destruction of any fixed or movable object or
property or other thing, including the wreck of
the Vessel, or any neglect or failure to raise,
remove, or destroy the same
9.1.3 liability assumed by the Assured under
contracts of customary towage for the purpose of
entering or leaving port or manoeuvring within the
port during the ordinary course of trading
CLAUSE 9 OF
PORT RISK 9.1.4 loss of life, personal injury, illness or payments
made for life salvage
9.2.4 the expenses of the removal of the wreck of
the Vessel from any place owned, leased or
occupied by the Assured
Clause 5. EARTHQUAKE AND VOLCANIC
ERUPTION EXCLUSION
EARTHQUAKE
AND VOLCANIC
ERUPTION In no case shall this insurance cover loss damage
EXCLUSION IN liability or expense caused earthquake or
volcanic eruption. This exclusion applies to all
ITC HULLS PORT claims including claims under Clauses 7, 9, 11
and 13
RISKS
Thank You
