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:

Option (C) — Both statements 1 and 2 are correct

• Aviation insurance provides comprehensive coverage against risks associated with aircraft operation, including physical damage and various liabilities.
• The Montreal Convention 1999 is a multilateral treaty that unifies the rules for international carriage by air, focusing heavily on passenger protection and carrier liability.
• Under the convention, airlines face strict liability up to a specific limit of Special Drawing Rights, ensuring families receive initial compensation promptly without lengthy legal battles over negligence.

• Statement 1. 'Aviation Hull Insurance' covers the physical aircraft, including the body, engine, and on-board equipment: Correct. This type of insurance specifically protects the physical assets of the aircraft against damage or loss while in flight, on the ground, or taxiing.
• Statement 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: Correct. The convention establishes a strict liability framework up to a certain compensation limit, meaning the carrier cannot escape liability for basic compensation by claiming they took all necessary measures.