The Association’s Marine Hull facility was set up in 1998 under the approval of the Association’s Board of Directors. The initiation of the Hull facility marks the shift of the Association’s emphasis from traditional P&I to a diversified business portfolio in order to meet the demands of the members for One-Stop Service and seamless insurance coverage. The Hull facility provides wide coverage for marine risks (H&M, Disbursements and War Risks) in addition to the traditional P&I covers to members, providing them with more options to streamline their insurance arrangement and narrow any gap that may exist in their insurances.

Hull Covers are offered to members on a mutual basis either stand-alone or as a package in order to address members’ diverse needs and requirements.


Our Products
On the principle of mutuality, the Association, in addition to its traditional P&I covers, offers Hull & Machinery insurance based on standard hull conditions, Increased Value and War Risks conditions according to the usual Hull Clauses in the Association’s Rules, and the scope of coverage is identical to PICC 86 Clauses. The Association has also been flexible on the hull clauses by adopting widely recognized conditions such as Institute Time Clauses, PICC Clauses (for worldwide and coastal trading vessels) tailored to meet individual member’s needs.


Our Business Philosophy

Mutuality; Reliability; Stability; Professional; One-Stop Service.

Mutuality: the Association’s Hull & Machinery business operates on the distinctive principle of mutuality with a strong commitment to minimizing members’ insurance costs for their best interest.

Reliability: The Association’s introduction of Hull & Machinery business will on one hand strengthen the Association’s financial position and on the other hand provide reliable insurance products for the members. The reliability is also evident in the Association’s reinsurance coverage and its selective policy on reinsurance partners’ rating and usual credit control.

Stability: Not only is the Association’s financial position stable, its Hull & Machinery business strategy has also been designed to minimize the effect of market fluctuation on the members. The Association has also been highly selective on the investment projects and the pace of its business developments when building up the reserves;

Professional: The Association specializes in marine insurance and consequently concentrates management, members training, product design and customer service in the field to provide comprehensive insurance solution and exceptional service to the members.

One-stop Service: The one-stop service is reflected in the scope of cover and claims handling where both P&I and H&M elements are involved in a single casualty. In order to better protect member’s interests, the one-stop service will try to minimize any insurance gap or shortfall and effectively avoid disputes which may arise in case of a marine casualty when different insurers are involved.


Our Service
The Hull & Machinery team consists of maritime university alumni who either have seafaring experience or legal background. The Association, staffed with such a specialized team, can provide personalized insurance to meet Members’ individual requirements based on their loss records and fleet trading patterns as well as internal management. The Hull & Machinery team also provides loss prevention advisory service for specific issues based on information received from its correspondents network and any other external resources. All types of service is available to Members 24/7 with the assistance of in-house professionals, international correspondents, surveyors, lawyers and salvage teams. The Association’s Letter of Undertaking is recognized globally by claimants, and had helped members to release their vessels detained by authorities or arrested by claimants in the past.

Loss prevention is another distinctive feature of the Association. Loss prevention not only includes entry condition survey to control underwriting quality but also includes onsite training, seminars and regular e-bulletins posted through WeChat Official Account and the CPI website.