Set sail assured…
- Yacht OwnershipThe sea… a source of inspiration and creation. Your yacht offers you unique moments in the infinite blue sea. Ensure you enjoy them safely, without unpleasant incidents or problems. Owning a yacht means assuming a responsibility, in which various dangers lurk.Unfortunately, the Cypriot State has not recognised the necessity and importance of mandatory yacht insurance policy, at least where Third Party Liability bodily injury and material damage are concerned. In Greece, since 2000, according to Greek legislation, the Insurance of yachts claims against third parties is obligatory.
Of course, in Cyprus the legislation regarding Third Party Liability, which in Cyprus is translated as “the responsible party pays” exists and is very strict. This means that in the event of someone being injured by a yacht, due to lack of mandatory Insurance, he will be forced to drag the owner of the yacht to courts, who has Vicarious Liability. In the end, when the liability of the yacht owner is proved, if he is unreliable, both parties are left with both the expenses and the trouble. The best way for everyone to be protected is to have a yacht Insurance policy covering both the yacht itself and Third Party Liability of the owner for bodily injury, as well as damage of property due to collision.
- What does the Yacht Insurance Policy coverThe Yacht insurance offers the insured party a full package of coverages for the same damages which the yacht can undergo from accidents and sea risks, covered by the comprehensive coverage Insurance policy.Despite the experience that the captain may have, sea risks can arise at any moment in time to anybody.Insurance coverages which are usually offered in a Yacht Insurance Policy:
- Coverage for damage to the vessel itself against several risks
- Personal belongings of the vessel’s owner
- Coverage against Third Party Liability
- Additionally, coverages against Personal Accidents of the passengers can be offered
- Coverages against damage on the yacht itself
To yacht is covered against loss or damage, caused by accidental occurrences, such as:Dangers of the sea (impact, collision, sinking)
• fire, lightning, explosion
• accidents occurring during loading and offloading
• boiler explosion, shaft breaks, malicious acts
• theft of the entire vessel while moored at a harbour, marina or other safe location (this coverage is not valid when the vessel is anchored on unsafe beaches)
• Rescue expenses and of wreckage recovery
• and in the event of total loss the agreed upon value will be paid. By the term ‘insured yacht’ one means the hull, the engine/s, the tender, the masts, the sails, the furniture and the equipment necessary for the sailing of the yacht.
- Coverage for personal belongings of the owner of the yacht
The personal belongings are covered as long as they are in the yacht, but this excludes items such as money, credit cards, jewellery, computers, fishing equipment, etc. Personal belongings are insured against theft only if they rare stored in locked areas, either on the yacht or in safes in buildings on shore or in a locked vehicle.
For personal items the usual highest compensation per item is GBP£1,000.
- Third Party Liability coverageThird Party Liability coverage is provided to the owner of the yacht and to any party using the yacht, given that he has obtained the permission of the owner. The coverage provided is intended for bodily injury and material damage caused to third parties through negligence or/and his/her crew, as well as coverage for sea pollution.
A. Examples of bodily injuries to third parties
o Injury by yacht to a swimmer
o Injury by yacht to a fishing gun fisherman
o Passenger of the yacht having been injured after impact with the yachtΒ. Examples of material damage to third parties:
• The captain of the yacht loses control of the vessel and causes damage to another yacht.
• The captain of the yacht causes damage to a dock upon collision
- Coverage of Personal AccidentsWith regard to the coverage of Personal Accidents, this is provided against the event of death or severe bodily injury of the owner or/and he captain of the insured yacht or any other person on board with the permission of the owner, which will occur either during the embarking or disembarking from it. The compensatory sums provided are defined by the determined bodily injuries. Usually Loss of Life / Disability from an accident, are covered by €9,000 per person and healthcare costs as in-patient/ out-patient status up to €900 per person per accident. These coverages are deemed as insufficient to cover severe injuries, therefore, it would be advisable for each passenger of a yacht to have their own personal healthcare, life and accident insurance, according to their specific needs.
- Usual Exceptions:• Damages or losses το canopies caused by winds, damages or losses to sails or masts unless the loss or damage are caused by sinkage, or collision of the vessel with another
• Theft of the trailer, unless this is locked in a car or a locked storage space.
• Theft of outboard motor, unless this is locked with an outboard motor lock
• Damages or losses caused by wear, lack of maintenance, corrosion, etc.
• Damages or losses caused by deceit from the insured
• Perils of war
• Coverage is not provided when the yacht is leased
• Coverage is not provided when the yacht is used as a permanent residence
- When is the yacht insuredCoverages are provided when the yacht sails in waters agreed upon with the Insurance Company and are listed on the Policy’s chart, when it docks, when it is at shore e.g. in the winter in a protected space and, optionally, during its transportation via automobile. Consequently, as there is a risk of damage during the above circumstances, be certain that you are fully covered.
- Additionally, coverages such as the following can be provided:1. Engine damage (the coverage is valid for engines up to seven years old)
2. War and Strikes
3. Transportation of the yacht to a trailer
4. Third Party Liability from and to sea-skiers
5. Sea sports Third Party Liability
6. The falling of the outboard motors into the sea
7. Transportation of the Yacht to shore
- How necessary is yacht Insurance?How can there be life without fire, women and the sea… All three are intertwined with a yacht. Seeing incidents on a daily basis, I firmly believe that insuring one’s boat is more than necessary.
9. Comprehensive Insurance or only Third Party Liability Insurance
In Cyprus, though Third Party Liability is not mandatory by Law, the Law states clearly that “the responsible party pays”, and thus there is no dilemma. When the question is posed, however, whether it is worth having comprehensive insurance, including damage to the boat, my reply is: “I insure all that I love”!
Being insured for the boat also is the only possibility we have to protect our capital in the event during which an accident caused by the perils of the sea occurs; and unfortunately, these perils are many. From thereon it is up to each and everybody to make their own choice as to whether they want to insure it…
http://www.cyprusyachtingmagazine.com/magazine.php?issue=issue.17 (pages 96-99)