Hull & Machinery Insurance
Institute Time Clauses - Comprehensive Physical Damage Coverage
What is H&M Insurance?
Hull & Machinery insurance provides comprehensive physical damage coverage for vessels and equipment under Institute Time Clauses. Our policies offer total loss protection (actual or constructive) caused by perils of the seas, fire, explosion, piracy, and various accidents.
The coverage extends to accidents in loading/discharging operations, bursting of boilers, breakage of shafts, latent defects in machinery or hull, and negligence of Master, Officers, Crew, or Pilots. Additionally, the policy includes 3/4ths collision liability, general average, and salvage charges.
SOGLAZE provides expert H&M insurance solutions tailored to shipowners, operators, and charterers, ensuring comprehensive protection for your maritime assets with competitive terms and responsive claims handling.
Coverage Highlights
Comprehensive protection under Institute Time Clauses - Hulls
Perils Covered
Coverage Details
Total loss coverage from perils of the seas and various accidents
Key Features
- Perils of seas, rivers, lakes, navigable waters
- Fire, explosion, violent theft
- Jettison, piracy, barratry
- Contact with aircraft or falling objects
- Earthquake, volcanic eruption, lightning
- Breakdown of nuclear installations
Accidents & Negligence
Coverage Details
Coverage for accidents in operations and negligence of crew or repairers
Key Features
- Accidents in loading/discharging cargo or fuel
- Bursting of boilers, breakage of shafts
- Latent defects in machinery or hull
- Negligence of Master, Officers, Crew, Pilots
- Negligence of repairers (not Assured)
- Barratry of Master, Officers, or Crew
3/4ths Collision Liability
Coverage Details
Indemnity for three-fourths of collision damages to other vessels or property
Key Features
- Loss of or damage to other vessels
- Property on other vessels
- Delay to or loss of use of other vessels
- General average, salvage of other vessels
- Cross-liabilities principle applied
- Legal costs with prior consent
General Average & Salvage
Coverage Details
Coverage for vessel's proportion of salvage charges and general average contributions
Key Features
- Vessel's proportion of salvage charges
- General average contributions
- York-Antwerp Rules adjustment
- Ballast voyage provisions
- Sue and labour charges
- Measures to avert or minimize loss
Continuation & Termination
Coverage Details
Automatic continuation provisions and termination conditions
Key Features
- Pro-rata monthly premium to destination port
- Change of Classification Society
- Change in ownership, flag, or management
- Bareboat charter transfer
- Requisition for title or use
- Pro-rata daily net return of premium
Claims & Deductibles
Important information about claims handling and deductible provisions
Deductible Provisions
No claim arising from a peril insured against shall be payable unless the aggregate of all such claims arising out of each separate accident or occurrence exceeds the agreed deductible amount.
This deductible shall not apply to claims for total or constructive total loss of the Vessel, or to any associated claim under Sue and Labour arising from the same accident or occurrence.
Notice of Claim
In the event of accident whereby loss or damage may result in a claim under this insurance, notice shall be given to the Underwriters prior to survey.
If the Vessel is abroad, notice shall also be given to the nearest Lloyd's Agent so that a surveyor may be appointed to represent the Underwriters should they so desire.
Policy Exclusions
Standard exclusions under Institute Time Clauses - Hulls
War Exclusion
- War, civil war, revolution, rebellion
- Hostile acts by or against belligerent powers
- Capture, seizure, arrest, restraint
- Derelict mines, torpedoes, bombs
Strikes Exclusion
- Strikers, locked-out workmen
- Labour disturbances, riots, civil commotions
- Terrorists or persons acting from political motives
Malicious Acts Exclusion
- Detonation of explosives
- Weapons of war employing atomic/nuclear fission
- Radioactive force or matter
- Malicious acts from political motives
Additional Provisions
Important clauses and warranties
Sistership Clause
Should the Vessel come into collision with or receive salvage services from another vessel belonging wholly or in part to the same Owners or under the same management, the Assured shall have the same rights as if the other vessel were entirely owned by parties not interested in the Vessel hereby insured.
Disbursements Warranty
Additional insurances are permitted for:
- Disbursements, Managers' Commissions, Profits (up to 25% of insured value)
- Freight, Chartered Freight (up to 25% of insured value)
- Time Charter Hire (up to 50% of gross hire for 18 months)
Lay-up Returns
Pro-rata monthly returns available for periods when the Vessel is laid up in approved ports or lay-up areas, subject to conditions regarding repairs, cargo operations, and protected waters.
Constructive Total Loss
In ascertaining whether the Vessel is a constructive total loss, the insured value shall be taken as the repaired value. No claim shall be recoverable unless the cost of recovery and/or repair exceeds the insured value.
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