The 60-second version
Shipbreaking liability insurance covers legal liability from yard accident, hazardous material release, or third-party injury during vessel demolition at Alang or other Indian yards — returning NRIs selling end-of-life tonnage need cover alongside wreck removal and pollution policies.
Hong Kong Convention compliance — shipbreaking policy funds yard liability above recycler contract cap
Shipbreaking liability insurance responds when demolition at Alang or other Indian yard causes hazardous waste release, worker injury claim, or environmental damage attributed to vessel owner.
Returning NRIs selling end-of-life bulk carriers need shipbreaking layer alongside wreck removal — Hong Kong Convention inventory of hazardous materials (IHM) is bind evidence.
Wreck lane: wreck removal guide for stranded vessel layer.
Shipbreaking stack
| Policy | Covers | Does not cover |
|---|---|---|
| Shipbreaking liability | Yard accident + hazmat | Voyage to yard |
| Wreck removal | Stranded removal | Planned beaching |
| Pollution | Spill cleanup | Asbestos removal |
| Lay-up | Moored vessel | Active demolition |
Purchase flow
IHM cert
Hazmat inventory.
Yard contract
Verify limits.
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Bind policy
Before delivery.
Delivery log
Handover record.
Stack
Shipbreaking kit
- IHM certificate.
- Recycling contract.
- Policy schedule.
- Delivery receipt.
- Claim hotline.
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HKC 2025
Hong Kong Convention entered force 2025 — verify yard HKC certification and owner liability allocation in recycling contract.
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vs wreck removal?
Wreck removal covers stranded vessel removal; shipbreaking liability covers planned demolition yard operations.
vs pollution?
Pollution covers spill cleanup; shipbreaking liability covers yard accident and hazmat release during demolition.
Alang only?
Policy should list approved yards — Alang, Mumbai, or other HKC-compliant Indian yards.
GST?
18% GST on marine liability premium.
IHM?
Inventory of Hazardous Materials required before delivery — insurer may require IHM certificate.
Claim?
Preserve recycling contract, IHM, and yard incident report within policy timeline.
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