Question
Which of the following statements about insurance in the aviation sector is/are correct?
1. Aviation Hull Insurance covers the physical aircraft, including body, engine, and equipment.
2. Under the Montreal Convention, airlines are strictly liable to compensate a deceased passenger’s family without needing to prove fault.
Explanation
Statement 1 — Correct: Aviation Hull Insurance covers physical loss or damage to the aircraft itself, including its body, wings, engines, avionics and onboard equipment. It is different from Aviation Liability Insurance, which covers third-party liabilities such as passenger injury or property damage.
Statement 2 — Correct: The Montreal Convention, 1999 governs international air carriage and includes India as a party. Article 21 establishes a two-tier liability system for passenger death or bodily injury. For claims within the prescribed threshold, the airline has strict liability, so compensation does not require the claimant to prove airline negligence.
Therefore, both Statements 1 and 2 are correct.