(1) HULL INSURANCE: The term “HULL” refers to the frame or body of the ship or vessel and its machinery . As the ship/ vessel/ hull moves from the one part to mother and it may be subject to marine perils, hence insurance is effected against the risks. There are a number of classification of vessel such as a ocean steamers, sailing vessel etc. The hull insurance policies are generally issued for 12 months . The hull policies provide the cover for the hull and machinery as well as in report of materials and outfit and stores and provision for the officers and crew . In addition, cover for liabilities is included. The hull policy consists of the basic policy form to which clauses are attached. The clauses are a known as “ Institute clauses” and are drafted by the institute of London Underwrites which is an association representing the marine insurance companies and Lloyds” underwriting operating in London. These clauses are adopted by the General Insurance Industry in India. The cover is provided by the Institute Times Clauses (Hull) and the risk covered are maritime perils such as fire collision stranding Etc.,
Additional perils not of a maritime nature are also covered. Some examples are damage to hull caused by latent defect in machinery accidents in loading or discharging cargo etc., The Institute Time clauses (Hull ) includes a clauses known as Running Down Clauses which extends the hull policy to provide cover to the shipowner in respect of his liability for damage caused to the another ship in a collision as a consequence of negligent navigation. Hull policies are also available to cover (1) loss of freight I.e., earnings derivable by a shipowner for the employment of his a ship and (2) disbursements I. e , amount spent by him in fitting out the vessel including provisions and a stores. Hull policies are also issued to cover vessels in course of constructions . These policies are taken by the ship builder . The vessels are insured from the laying of the keel until completion of trails leading to the delivery of the ship to its owners. Hull insurance also includes the following insurances: (1) Inland vessels such as a barges launches, passengers, vessels etc., (2) Dredgers ( merchandised or non-mechanised) .
3) Fishing vessels ( merchandised or non-mechanised) . (4) Sailing vessels ( merchandised or
non-merchandised) . (5) Jetties and wharves. 2. CARGO INSURANCE: Cargo means the good or merchandise commodities carried in a ship in the course of shipment. When the goods or cargo transported from the port of the departure of the port of destination, forms the subject matter of insurance. This policy may be arranged for the duration of a voyage or as time policies or open policies or on other basis. As in hull insurance, the basic cover (I.e . in respect of maritime perils) is provided by the Standard marine policy. In practice the cover is much the Institute Cargo clauses attached to the policy. However from 31st march 1983, the Lloyd’s S.G. Policy form the has been replaced by the a new simplified policy which contains particulars such as a name of the insured, details of vessels , voyage, goods insured sum insured, premium etc.,
The risks covered under the cargo is policies an are incorporated in the revised institute Cargo clauses (A), (B), and ( C ). (1) INSTITUTE CARGO CLAUSE ( C ): This cover is provided for loss or damage to cargo due to (a) Fire or explosion, (b) Standing grounding sinking of the vessel or craft: ( c ) Overturning or derailment of vehicle . (d) Collision or contract of vessel or conveyance with an external object (e) discharge of cargo at port of distress: (f) General average and Salvage charges and (g) Jettisoning. (2). institute cargo clauses (B): In additional to the losses covered under clauses ( C ) Sling loss
I, e, total of any package lost or dropped during loading or unloading and (d) entry of sea, lake or river water. (3) INSTITUTE CARGO CLAUSE (A): The cover is on a All risks basis and thus covers all physical loss or