Differences between Hull insurance and Cargo Insurance
Marine Cargo insurance: Covers loss of or damage to the goods carried in a vessel or aircraft, whether on domestic or international journeys.
Marine Hull Insurance: covers loss of or damage to a vessel or aircraft or its machinery or equipment.
Hull insurance mainly caters to the torso and hull of the vessel along with all the articles and pieces of furniture on the ship. Cargo insurance caters specifically to the marine cargo carried by ship and also pertains to the belongings of a ship’s voyages.
Marine hull insurance is basically the insurance of all types of vessels including (Motor tankers, Bulk Carrier, Combo Vessels, Yachts, pleasure boats etc), and covers loss to Hull i.e., the structure of Ship and Machinery well. Regarding Calculations, premium several things are taken into account i.e., year of Built; Nature of Vessel, Useful life of the vessel, Trade routes etc.
Marine Cargo Insurance covers loss of or damage to the goods carried in a vessel or aircraft, whether on domestic or international journeys. Marine Hull Insurance covers loss of or damage to a vessel or aircraft or its machinery or equipment. The difference is in the interest insured. marine hull cover includes hull and machinery of the vessel and the third party liability. In calculations of the premium with respect to the marine hull, we consider the age of the vessel.
Marine Cargo is basically insurance of Cargo on these vessels, aircraft, locomotive etc. i.e. movement of cargo from one point to another through above-mentioned modes. Premium calculations are based on a number of things, which includes the Nature of Cargo, Delivery route, Mode and Delivery method whether by air, by sea or by road etc.