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.

Both statements are correct. Statement 1 is correct: Aviation Hull Insurance covers physical damage to the aircraft itself, including the airframe (body), engines, and equipment installed on board. It is similar to comprehensive insurance for the aircraft as an asset. Statement 2 is correct: The Montreal Convention of 1999 (formally the Convention for the Unification of Certain Rules for International Carriage by Air) was adopted by over 130 countries including India (India ratified it in 2009). It establishes a two-tier liability regime where airlines are strictly liable (no fault required) for damages up to a specified amount (around 128,821 SDRs) for death or injury to passengers. Beyond this limit, airlines can avoid liability only by proving they were not negligent.