Statement 1 is Correct: Aviation Hull Insurance is a specialized property insurance policy designed to cover physical loss or damage to the aircraft itself. Standard hull policies cover the aircraft's fuselage (body), wings, propulsion systems (engines), avionics, and on-board instruments or equipment. It is distinct from Aviation Liability Insurance, which covers legal liabilities for third-party property damage or passenger injuries.

Statement 2 is Correct: The Montreal Convention (1999), formally known as the Convention for the Unification of Certain Rules for International Carriage by Air, has been ratified by over 130 parties globally, including India. Article 21 of the convention establishes a two-tier liability regime for passenger death or bodily injury. Under the first tier, for damages up to a specified threshold, the airline is held strictly liable. This means the victim's family or nominee is automatically entitled to compensation without being required to prove negligence or fault on the part of the airline.

Therefore, both statements are correct, making the correct option C.