Marine Hull Insurance in the UAE

Marine Hull Insurance is intended for commercial vessels and may cover eligible physical loss or damage to the insured vessel’s hull, machinery and permanently installed equipment. Cover remains subject to the issued policy wording, agreed value, deductibles, trading limits, conditions and exclusions.

Al Buhaira Insurance may consider individual vessels or fleets operating within declared waters such as the Arabian Gulf, Gulf of Oman, Arabian Sea, Indian Ocean or other agreed trading areas. The vessel’s ownership, use, construction, age, condition, classification and operating area must be accurately declared.

Commercial Vessels That May Be Considered

Depending on underwriting acceptance, vessels may include:

1. Ocean-going vessels
2. Coastal trading vessels
3. Tugboats and towing vessels
4. Barges and workboats
5. Port and harbour fleets
6. Dredgers used for marine construction or maintenance
7. Other declared commercial vessels

Privately used yachts and pleasure craft may require a separate Yacht and Pleasure Craft Insurance policy. Vessels under construction may be more appropriately insured under Builders’ Risks Hull Insurance.

What Marine Hull Insurance May Cover

Depending on the selected wording, cover may include:

1. Hull and machinery damage: Eligible physical loss or damage to the vessel’s hull, machinery and installed equipment.
2. Total loss: Actual or constructive total loss of the insured vessel when covered by the selected policy basis.
3. Collision liability: The insured vessel’s agreed proportion of applicable legal liability arising from collision with another vessel.
4. General average: The insured vessel’s eligible contribution to general-average expenses, subject to the applicable marine clauses.
5. Salvage charges: Eligible salvage expenses incurred following an insured marine casualty.
6. Sue and labour expenses: Reasonable costs incurred to avert or minimise an insured loss, subject to policy conditions.

The policy may be based on Institute Time Clauses–Hulls or another agreed marine wording. Cover may range from total-loss-only protection to broader hull and machinery cover, depending on the vessel and underwriting assessment.

Agreed Value

Marine Hull Insurance may be issued on an agreed-value basis. The insured value is agreed when the policy is issued and should be supported by suitable valuation information, purchase documents or a marine survey.

The agreed value does not remove the effect of deductibles, salvage, policy limits or settlement conditions. Increased Value Insurance may be considered separately when additional protection above the insured hull value is required.

Who May Need Marine Hull Insurance?

The policy may be relevant to:

1. Vessel owners
2. Fleet operators and vessel managers
3. Mortgagees and lenders with an insurable interest
4. Bareboat or time charterers with contractual responsibility
5. Businesses required to arrange cover under a charter or finance agreement

Commercial navigation, registration, financing, port or charter requirements may require evidence of insurance. Vessel owners should confirm the applicable requirements with the relevant authority, lender, port or contractual party.

Important Policy Conditions

1. Trading limits: The vessel should operate only within the geographical limits stated in the policy.
2. Class and certification: Required classification, registration, inspection and statutory certificates should remain valid.
3. Seaworthiness: The vessel should be maintained, equipped, crewed and operated in a seaworthy condition.
4. Vessel use: The declared trade, cargo, towing, dredging or other activity should match the use accepted by the insurer.
5. Management and crew: Material information regarding vessel management, ownership, flag, crew and operating arrangements should be disclosed.
6. Material changes: Changes to ownership, flag, class, value, trade, operating area or vessel use should be reported.

Optional Extensions and Separate Covers

Subject to underwriting acceptance, additional insurance may be considered for Increased Value, war and strikes risks or other specified marine exposures. These risks are not automatically included under standard hull clauses.

Protection and Indemnity Insurance is generally separate from Marine Hull Insurance. It may address liabilities such as crew injury, passenger liability, pollution, cargo liability, wreck removal and other third-party exposures, depending on the issued P&I terms.

Common Exclusions and Limitations

Marine Hull policies may exclude or restrict:

1. Wear and tear: Gradual deterioration, corrosion, fouling, erosion or lack of maintenance.
2. Machinery failure: Internal breakdown may be restricted unless resulting damage or the cause falls within the selected wording.
3. Unseaworthiness: Loss connected with a known unsafe or unseaworthy condition.
4. Excluded trading: Operation outside agreed trading limits or involvement in undeclared activities.
5. Consequential loss: Loss of hire, income, use, market or delay unless separately insured.
6. War and strikes: War, capture, seizure, mines, strikes and related risks unless separately included.
7. Other excluded events: Deliberate acts, nuclear risks and other exclusions stated in the policy.

What to Do After a Marine Incident

1. Protect the crew, passengers, vessel and surrounding property.
2. Contact the relevant maritime or emergency authority where required.
3. Take reasonable steps to prevent further physical loss or damage.
4. Notify Al Buhaira Insurance as soon as reasonably possible.
5. Preserve logbooks, photographs, charts and electronic voyage records.
6. Keep survey reports, repair estimates and witness details.
7. Do not admit liability or agree to a settlement without prior approval.

How to Request a Quotation

Vessel owners and operators can submit initial information through Al Buhaira Insurance’s dedicated Marine Hull quotation page. The assessment may consider the vessel type, age, construction, class, flag, value, machinery, trading area, operating use, management, crew experience and claims history.

A quotation does not confirm that insurance has started. Cover begins only after the required information has been reviewed, the offered terms have been accepted and the applicable policy documents have been issued.

Documents Required

The insurer may request documents and information such as:

1. Completed proposal or quotation form
2. Company trade licence and ownership details
3. Vessel registration and flag documents
4. Classification and statutory certificates
5. Vessel specification and machinery details
6. Current marine survey or condition report
7. Purchase documents or vessel valuation
8. Declared trading and navigation limits
9. Description of vessel use and cargo activities
10. Vessel manager and crew information
11. Mortgagee or lender requirements
12. Required collision-liability limit
13. Previous insurance details and claims history

Why Choose Al Buhaira Insurance?

1. Marine insurance range: Marine Hull Insurance is available within Al Buhaira Insurance’s marine products.
2. Dedicated quotation page: Vessel owners and operators can submit initial vessel and operating details online.
3. Vessel-based assessment: Quotations can consider the vessel, agreed value, trading area, activity and requested cover.
4. Policy enquiries: Customers can enquire about issued clauses, trading limits, deductibles and extensions.
5. Claims enquiries: Policyholders can report incidents and submit supporting marine documents for assessment.

Frequently Asked Questions