Marine Insurance FAQ’s
Briefly what does Thomas Smith Pleasure Craft Insurance Policy cover?
The policy is based on a comprehensive cover and provides for cover against loss or damage to the actual vessel, its equipment and machinery caused by external accidental means which would include such perils as fire, explosion, theft, collision, malicious damage, stranding and storm damage.
The insurance is also extended to cover the insured’s legal liability to third parties, passengers and if applicable liability incurred by and to water skiers.
On what value do I have to insure my craft?
Insurance policies aim to put the insured in the same financial position he was prior to the loss. In this respect the insured value is to represent the replacement value of the craft in its present condition, bearing in mind wear and tear.
How can this value be established – can the insurance company value my boat?
Insurance personnel are not valuers and therefore if you are in doubt on how much your boat should be insured for, a marine surveyor will guide you, contact us for details of approved surveyors.
Would my outboard be covered if it were to fall into the sea?
Yes the insurance provides for loss or damage to the outboard motor caused by dropping off or falling overboard.
Can I extend my Insurance to cover the tender?
If the tender is specifically included when completing your proposal then the tender and its outboard will be insured and the cover will be on identical terms as the boat.
However the tender is to be marked with the boat’s number or name and is not to have a maximum designed speed in excess of 17 knots.
What does “liability” really mean and what type of cover can I obtain?
Liability is when one is legally responsible for damaging other persons’ property or for injuring other persons. With regards to the liability cover provided by the Thomas Smith Marine insurance policy this may be liability to: -
- Third Parties
- Passengers on board the insured craft
- Water skiers being towed by the insured craft
- Third parties, incurred by the water skier being towed
Do I require third party insurance when cruising out of the Maltese waters?
It is highly recommended that before any trip you make sure that you have adequate cover for the country you are visiting. Never have the impression that a travel insurance policy which normally gives Personal Liability Cover will also include you liability arising from the use of your boat because in many cases this is not so.
As an example in Italy there is legislation, which imposes that certain types of boats require Third Party Insurance cover, sometimes they also want to see proof of this insurance cover. Do ensure that you have all the necessary documentation so that your trip is not ruined.
Would the insurance provide cover whilst I am towing my boat to the garage?
Yes our policy provides this cover however do remember that the cover is on the actual boat and not for third party liability, so if the boat / trailer damages or injures any third party the boat insurance will not provide such cover.
You can get this insurance cover by extending your motor insurance policy to cover towage of boat trailer.
The exclusions whilst in transit are scratching and bruising and / or denting of the craft.
Would the craft be insured whilst I am loading and unloading it?
Yes the transit risks clause will include the loading and the unloading of the vessel from its trailer as well as whilst it its being launched or taken out from the water
Would I be covered if my boat or some equipment is stolen?
Yes, the insurance includes theft cover however theft of equipment is to be by forcible means. In the event of any theft say of an outboard engine there is to be some form of evidence that the items stolen were not just carried away. An outboard can be easily secured with a chain and padlock and the equipment is normally either fitted to the hull or else locked in the cabin.
Is it necessary to issue a twelve-month insurance when I only use the boat during summer months?
The insurance policy provides cover whilst the craft is in commission, which is the time when the craft is used at sea and also whilst it is laid-up, which is the time when the craft is put in a garage or out of use. Therefore the cover would be for a twelve-month period. In the event that the insurance is to cover the summer months only you will incur additional costs because the premium to be charged would be calculated at high rates.
Further more the local regulations impose that third party insurance is issued for a twelve-month period.
Would my craft be considered as laid up if I do not bring it out of the water but leave it on its own moorings although I do not use it?
Yes the laid up period will cover the insured craft whilst either laid up ashore or afloat however there would be no insurance in force if the craft is taken out or if the mooring is not approved by the insurance company.
Would I be covered whilst racing with my craft?
The standard insurance policy does not provide cover for racing. However the Insurance can be extended for sailing yachts at an additional premium..
Will I be entitled to a No Claim Bonus on my boat insurance?
Yes a No Claim Bonus is allowed in the event that an insurance policy is in force for more than twelve months without a claim being made and the No Claim Bonus scale varies depending on the number of year’s claims free.
Can a No Claim Bonus be transferred from one boat to another or from one insurance company to another?
Yes the No Claim Bonus is earned by the insured and not by the craft therefore if one replaces this boat the No Claim Bonus is transferred to his new insurance.
When transferring the No Claim Bonus form one company to another, proof of such No Claim Bonus is to be submitted.
What is an excess of policy?
An excess is the part that you have to pay out of the total claim. This means that in the event of a claim for loss of damage, which is covered by the policy the excess will be, deducted from your claim settlement. In certain situation you have an option to increase your excess and benefit from a reduction in premium.
Can I have a policy covering only my legal liability?
Yes we can also quote Third Party Only cover.
