Hull & Machinery

Hull and machinery insurance is a type of ocean marine insurance. This coverage protects the insured vessel or fleet against physical damage caused by a peril of the sea or other covered perils while the vessel is in transit over water subject to terms and condition of the policy.
Hull and Machinery Insurance is based on “Agreed Value” where the insured value is agreed between parties involves on the Insurance contract I.e the Assured and The Insurer.


In general provide guarantees for:

  • Perils of the seas river lakes or other navigable waters.
  • Fire, explosion
  • Violent theft by persons from outside the insured ship
  • Disposal of part of the insured ship / Jettison
  • Piracy
  • Damage or accidents to nuclear installations or reactors
  • Collision with aircraft or other similar objects, or objects falling from the objects mentioned above, land transportation equipment, equipment or docking installations or ports
  • Earthquakes, volcanic eruptions or lightning
  • Accidents in loading or unloading or shifting cargo or fuel
  • Bursting of the boiler breakage of shaft or any latent defect in the machinery of hull
  • Negligence of the captain, officers, crew of the insured ship
  • Negligence of the repairers or charterer provided such repairers or charterer are not an Asssured hereunder.
  • Barratry of Master Officers or Crew

There are 4(four) choices of clauses that are often used in Hull and Machinery Insurance, namely:

  • Institute Time Clauses – Hulls 1/10/83 Clause 280 with comprehensive guarantee
  • Institute Time Clauses – Hulls 1/10/83 Clause 284 covered with Total Loss Only, General Average, THS collision liability (including salvage, salvage charges and sue and Labor)
  • Institute Time Clauses – Hull 1/10/83 Clause 289 with guaranteed Total Loss Only (Including salvage, salvage charges and Sea and Labour
  • Institute Time Clauses – Hull 1/10/83 Clause 280 but warranted Free From Particular Average (FPA).
  •  Loss of or damage to any other vessels or property on any other vessel or property
  • Delay to or loss of use of any such other vessel or property thereon
  • General average of , salvage of, or salvage under contract of , any such other vessel or property thereon.
  • The indemnify provided by this Clause 8 shall be in addition to the indemnity provided by the other terms and condition of this insurance.

Note : The above collision liability can be extend to 4/4 Ths from the Insured Value

Object of Insured


  • Risk of War

  • Strike Risk

  • Risk of Bad Deeds

  • Nuclear Risk

  • Terrorism Exclusion

  • Radioactive Contamination

  • Cyber Attacks

  • Willfull misconduct of the Assured

  • Loss caused by delay

  • Wear and Tear

  • Un-seaworthiness of vessel and/or Illegal trading.

Sum Insured

Sum insured is typically based on agreed value which must not exceed the market value of the vessel (market average value at the moment the contract of insurance is concluded). The amount recoverable under the policy is limited by the sum insured

Minimum Data Requirement

  1.  Detail of vessels (Name, year of built, gross tonnage , flag and class)
  2.  Type cargo carried
  3.  Trading area or navigation
  4.  Insurance Experience and Loss Record
  5.  Number of ships (fleet) insured
  6.  Background information about Owners and/or Technical Managers of the vessels.

Claim Procedure​

  1.  To notify all parties concerned immediately of the accident, the loss and damage sustained. Such parties may include but not limit to Shipowners, Charterers, Insurance Company, Relevant Authorities and ship’s Classification Society, Cargo Owners etc.
  2. To take such necessary measures as may be reasonable for the purpose of averting or minimizing a loss which would be recoverable under the Insurance.
  3.  To submit Sea Protest and/or other Accident Report issued by shipmaster and/or crewmember together with other supporting documents such as the abstracts of the Deck/Engine Logbook. In case of collision with other ships, the Insured must put the other parties on Notice, holding them liable for the loss or damage sustained by insured ship and to get all the particulars of the opponent vessel. Do not accept/acknowledge liability before seeking the written approval from Insurance Company.
  4. In case of Machinery Damage, keep the damaged parts for the verification by loss surveyor.
  5. It is essential for the Insured to inform any accident immediately to the Insurance Company as unreasonable delay or omission may cause the policy coverage partly or totally void. 

Documents required in support of your claim are:

  1.  Master’s Incident Statement.
  2.  Statement of Claim supported by the relevant Repairing Invoices.
  3.  Payment Receipts.
  4.  Vessel’s Valid ISM Compliant documents and Certificates.
  5.  Vessel’s valid Class Maintained Certificate.
  6.  Any other relevant supporting claim documents.
  1.  Original Policy.
  2.  Total Loss Certificate issued by an Average Adjuster.
  3.  Vessel’s Valid ISM Compliant documents and Certificates.
  4.  Vessel’s valid Class Maintained Certificate.
  5.  Any other relevant supporting claim documents.
  6.  For Any Other Losses:
    Please provide us with all relevant claim
    documents available to you in support of such