Which of the following statements about insurance in aviation sector is/are correct? 1. Aviation Hul

Question

Which of the following statements about insurance in aviation sector is/are correct? 1. Aviation Hull Insurance covers the physical aircraft, including body, engine, and on-board equipment. 2. Under the Montreal Convention (1999), airlines are strictly liable to pay compensation to deceased passengers' families without requiring proof of fault.

Accepted Answer

Both statements are correct. Aviation Hull Insurance covers physical loss/damage to the aircraft itself (fuselage, wings, engines, avionics). The Montreal Convention (1999), ratified by 130+ countries including India, establishes strict liability under Article 21 — for damages up to a specified threshold, the airline is automatically liable without requiring the family to prove negligence.