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.

Statement 1 is correct: In aviation insurance, 'Hull Insurance' refers specifically to insurance that covers physical damage to the structure of the aircraft itself. This includes the fuselage, wings, engines, onboard instruments, and any continuously attached equipment, protecting the operator against losses from accidents on the ground or in flight. Statement 2 is correct: The Montreal Convention (1999) modernized international airline liability rules and established a two-tier liability system. Under the first tier, the airline is subject to strict liability (up to a specific financial limit measured in Special Drawing Rights, or SDRs) for the injury or death of a passenger caused by an onboard accident. The family/nominee does not need to prove negligence or fault on the part of the airline to claim this initial compensation. India ratified this convention, and it was integrated into domestic law via the Carriage by Air (Amendment) Act, 2009.