Hull and Machinery (H&M) Insurance

Maritime Mutual can provide comprehensive H&M insurance in addition to 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 million 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.280) or ITC ’95 Restricted Terms (CL. 289), together with appropriate ITC ’95 War and Strikes cover.

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.

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