Hull and Machinery

Hull and Machinery

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Despite modern technical and technological progress safety at sea is far from being absolute. Maritime craft are subject to unpredictable natural phenomena like perils of the sea, human errors, as well as modern events like terrorism and piracy. Each of them may cause a severe loss. So it is only fair to say that a probability of accidents in seaborne trade will exist probably forever. Along with that an average amount of H&M losses incurred by shipowners attributable to such occurrences tends to increase due to expansion of world merchant fleet, growth of ship values and increase of repair costs.

An H&M policy protects shipowners against physical loss or damage to the vessel’s hull, machinery and everything connected therewith. The policy may also be endorsed to the benefits of the ship’s mortgagees which is usually the case when a shipowner takes out a bank loan.

Under H&M policy we will cover loss and damage incurred by the Assured up to the sum insured in respect of the following extent of cover:
  • Vessel’s hull, machinery and other equipment;

  • Salvage and Salvage charges;

  • General average contribution;

  • Sue and labour;

  • Proportion of Liability for collision with another vessel (3/4ths or 4/4ths);

  • Loss of Hire

Scope of cover 

We offer H&M cover which is based on the “named perils” principle - marine perils that a shipowner undergoes during maritime adventure, subject to the standard exclusions, similar to ITC Clauses. On request and for the convenience of Assureds we offer H&M cover based on other markets' recognized Rules or Clauses. Please see reference at the bottom of this page.

There are three sets of basic conditions:
  1. “Loss and damage”:
    • Actual or constructive total loss of the vessel;

    • Damage to vessel's hull, engines, machinery and equipment caused by any accidents;

    • Necessary and reasonable expenses for salvage of the vessel and salvage charges;

    • Vessel’s share in general average;

    • Sue and labour.

  2. “Total Loss and General Average”:
    • Actual or constructive total loss of the vessel;

    • Necessary and reasonable expenses for salvage of the vessel and salvage charges;

    • Vessel’s share in general average;

    • Sue and labour.

  3. “Total loss only”:
    • Actual or constructive total loss of the vessel;

    • Necessary and reasonable expenses for salvage of the vessel and salvage charges;

    • Sue and labour.

Additional cover

Shipowner may choose coverage to include:

Collision Liability  
Proportion of Liability for collision with another vessel (3/4ths or 4/4ths)

War risks  
Loss or damage caused by an act of war including civil war, revolution, rebellion, riot, hijacking or detention whereas normally these risks are excluded from the usual coverage (but for barratry and piracy). Such cover is given under other standard clauses like the Institute War and Strikes Clauses - 1.10.83 or 1.11.95. The List of War Risks excluded areas is here.

Strikes risks   
Loss or damage caused by strikes, labour unrests and any disturbances related to or connected with such actions. Such cover is given under the Institute War and Strikes Clauses - 1.10.83 or 1.11.95.

Small General Average   
Owners have the option to claim General Average Expenditure up to AGREED SUM to be paid in full, without recourse to Cargo and/or Charterers and/or other contributing interests.

Loss of hire  
Loss of hire/earnings in the event of the vessel being off hire or unable to trade as a result of occurrence attributable to operation of a peril insured against. Loss of hire sustained by the Assured in case of total loss or when the damaged vessel is sold shall not be recoverable.

Period of cover 

Standard cover normally runs for a period of 12 months and is to be renewed thereafter. Cover may be given for a particular voyage if appropriate.

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.

Premium is quoted individually depending on the Vessel details and other specific shipowner features provided by the Assured, such as:

  • dimensions (GRT);
  • year of built;
  • ship condition;
  • type;
  • trading pattern and area;
  • loss record;
  • scope of cover (risks covered);
  • deductible.
Our competitive advantages  

We are a specialty company with the main commitment to MAT segment. In marine our key customers are owners of small to medium sized vessels. As opposed to large Russian universal companies we offer our customers quality service (24/7) by professionals dedicated to the chosen market segment. We differentiate by low level of company bureaucracy, quick and creative response to client’s needs, adequate price, and quality reinsurance protection.

In order to get an indication / quotation

you may fill in an Application for H&M insurance or send your inquiry to a regional office or appropriate underwriter.

Get Quote

Please provide complete information and be as accurate as possible.
Fill in and send the application to AMT via:

  1. underwriters:
  2. fax: +7 495 637 6649
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