Which of the following statements about insurance in aviation sector is/are correct?1.'Aviation Hull Insurance' covers the physical aircraft, including the body, engine, and on- board equipment.2.Under the Montreal Convention, adopted in 1999 by over 130 countries, including India, airlines are strictly liable to pay compensation to the family/nominee of every deceased passenger without requiring the family to prove fault. Select the answer using the code given below:

1. A

   1 only

   1 only: Incorrect because statement 2 is also correct as the Montreal Convention 1999 establishes strict liability for airlines in passenger fatalities.

2. B

   2 only

   2 only: Incorrect because statement 1 is also correct as Aviation Hull Insurance covers physical damage to the aircraft body, engines, and equipment.

3. C

   Both 1 and 2

   Both 1 and 2. Statement 1 correctly defines Aviation Hull Insurance, which protects against physical damage to the aircraft itself. Statement 2 correctly outlines the Montreal Convention of 1999, to which India is a party, imposing strict liability on international carriers to pay compensation for passenger death or injury without proof of airline fault.

4. D

   Neither 1 nor 2

   Neither 1 nor 2: Incorrect because both statements accurately reflect aviation insurance principles and international convention rules. Summary. Official key is (c). Statement 1 correctly identifies the scope of hull insurance covering physical aircraft assets, and statement 2 accurately details the strict liability provisions of the Montreal Convention ratified by India, making both statements correct.

Summary. Official key is (c). Statement 1 correctly identifies the scope of hull insurance covering physical aircraft assets, and statement 2 accurately details the strict liability provisions of the Montreal Convention ratified by India, making both statements correct.