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A hassle-free guide to filing a yacht insurance claim

23/03/2022

Filing a yacht insurance claim is a process that every owner hopes they would not have to go through, but should nonetheless be familiar with. Should an incident occur, knowing the steps and important points is essential to minimise delay and limit any unnecessary financial consequence.

This article will provide you with a clear understanding of the following:

  • What to do (and what not to do) in the event of an incident.
  • When and how to report the incident to your insurance broker.
  • What documents are required to process the claim.

6 important pointers for yacht insurance claims

Owners who purchase yacht insurance should keep the following key points in mind:

  • Practice safety first in the event of an incident by prioritising the protection of all personnel on board. Take all emergency action necessary, and utilise all safety practices and equipment that is generally considered prudent for operations relating to the incident.
  • Treat any accident as if no insurance is available, even if you have insurance coverage in place. Protect the insurers’ interest by taking steps to minimise, mitigate and prevent further loss and/or damage, and avoiding delay in reporting the incident. 
  • Give notice of any incident promptly to enable your insurer to appoint and instruct a surveyor to assess the loss and/or damage. Any significant delay in the notification of a loss may result in the claim being rejected due to the inability to assess the loss and/or damage accuracy, which prejudices the insurer’s position.
  • Report all incidents, even if it appears that they may fall below the deductible, or if the claim may later be withdrawn.

For Marsh YachtCover, policyholders are required to report immediately to their broker every occurrence that may become a claim and file proof of loss within 90 days from the date of loss.

  • Effect the most economical repair. It is highly recommended to obtain several quotations and send these to your insurance broker for the insurer’s review prior to executing the repairs. This is to ensure that you’ll be able to claim and receive the full amount according to your policy’s terms and conditions.
  • Give prompt notice to the third party and hold them liable for all losses, if the fault in an incident may lie with them. It is also usually advisable to report incidents involving third parties to the local police.

Now here’s a really important point to note: Where a third party may be involved, policyholders are also obliged to refrain from admitting liability or waiving any rights without the prior approval from insurers, and the policyholders must also preserve any potential right of recourse against third parties to protect themselves.

If you are a Marsh YachtCover policyholder and wish to file a claim, complete the claim form.  

Download claim form

What details should I include when filing a yacht insurance claim?

In the event of an incident that may give rise to a claim under your yacht insurance policy, the prompt notification given to the relevant parties must be accompanied by all of the material information available at the time, including but not limited to the following:

  • Exact location of the incident (e.g. geographical coordinates or name of specific location)
  • Date and time of the incident 
  • Nature and type of loss
  • Photos of any damages
  • A brief description of what happened, including comments as to how and why the incident occurred
  • Interest affected (e.g. equipment, materials, personnel)
  • The extent of loss, damage, or injury together with a preliminary cost estimate (where possible), will be used as a basis for the initial reserve figure advised to insurers. (This should be a gross figure that does not take into account the policy deductible.)
  • Details of any third party demands

Notifications should also be submitted together with the Certificate of Insurance Numbers with other references such as the name of the yacht and other official number/numbers, along with the phone number of an immediate contact.

When will my claim be settled?

Marsh YachtCover requires insurers to make payment within 90 days after satisfactory proof of loss and proof of interest in the yacht.

To ease the stress and burden on yacht owners, we aim to have claims settled as soon as possible with payment made within 14 days following the agreement of the final adjustment. (In normal circumstances, it takes a few weeks to complete the adjustment for a typical claim.)

Finally, the deductible amount shall be deducted from the claims payment, except in the event of a Total Loss or Constructive Total Loss of the yacht, where no deduction shall apply.

Filing a claim as a Marsh YachtCover policyholder is a smooth and seamless process, click this link to file your claim. 

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Author

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Peeravut Sukho

Country Sales Leader, Thailand

Please note that Marsh PB Co., Ltd and Marsh McLennan are not engaged by nor involved in any manner with Bonus Ranch and its promotion, and has not placed any insurance for nor insured any of its businesses or operations. Marsh as a licensed insurance broker will not request customers to make payment via non-standard methods, such as the transfer of money to any individual’s bank account.