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 in this course 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