Hull & Machinery
Hull and Machinery (H&M) Insurance
Maritime Mutual can provide comprehensive H&M insurance alongside Maritime Mutual P&I cover. This is an exclusive service available to Maritime Mutual Members and their entered vessels only. The upper limit of cover usually offered is USD 2,500,000 but higher limits can be made available upon request.
The scope and terms of Maritime Mutual’s H&M cover are based on the globally recognised ITC Hulls 1/11/95 clauses. Members may select either ITC ‘95 Full Terms (CL.280B) or ITC ’95 Restricted Terms (CL. 289).
A summary of both the asset and liability cover provided by the ITC ’95 Full Terms clauses is as follows:
Shipowner Asset Damage and Loss
- Actual Total Loss of the vessel or a Constructive Total Loss (CTL) caused by an insured peril.
- A CTL will be deemed to occur when the cost of salvage and repair is assessed as exceeding the policy insured value.
- Insured perils include Perils of the Seas, Fires & Explosions, Robbery & Piracy, Jetty contact, Earthquakes & Eruptions, Cargo accidents, Bursting of boilers, Negligence of master, crew and pilots, Negligence of repairers or charterers, Contact with helicopters, aircraft or objects falling from them.
- The reasonable cost of repairs or replacement of parts due to partial damage to hull, machinery or equipment caused by an insured peril.
Shipowner Liabilities
- 3/4ths Collision Liability (unless agreed to be 4/4ths under P&I) together with associated legal defence costs.
- Sue and labour expenses incurred by the shipowner to minimise any losses.
- Salvage costs incurred to save the vessel and her crew.
- General Average expenses and the contribution of the shipowner.
Additional standard H&M clauses may also be agreed and included, together with other Maritime Mutual terms e.g. that a mortgagee bank is to be the policy beneficiary.
