Across Asia, yacht owners know the importance of insuring their vessels, which enables access to marinas, indemnifies against third-party liability and damage, and offers protection against a wide range of natural and man-made risks that can potentially incur high costs.
However, yacht insurance policies vary widely and obtaining the right level of cover can be difficult. How do yacht owners select from the range of yacht insurance options available and secure the correct level of coverage to protect their prized assets?
Marsh YachtCover helps yacht owners identify and obtain the optimal level of yacht insurance cover at highly competitive pricing and market-leading terms via an online quotation web portal. We provide end-to-end protection and support for yachts — including claims assistance and management following an accident — and coverage that is tailored to your profile and needs. Marsh YachtCover’ s service goes above and beyond the typical insurer at no additional expense while helping you save, on average, 10% on your premiums.
Marsh YachtCover is specially curated for pleasure yachts registered in Asia and/or sailing within Asia valued between US$500,000 and US$18million. Coverage for higher-valued yachts and/or a wider geographical coverage are also available—please contact our yacht specialists.
Coverage features include (but are not limited to) the following:
The above information is intended as a general summary and is indicative of the key features of an insurance plan. Full policy wording should be referred to for full details of benefits, exclusions, and requirements. A copy of the policy wording will be provided with our quotation.
Different territories have varying rules and regulations with regards to boat insurances. Please check with your local authorities on the insurance requirements.
Singapore
The Maritime Port Authority of Singapore requires all yacht owners to have an insurance policy before they can issue a pleasure craft license.
Hong Kong
It is mandatory for all boat owners in Hong Kong to purchase boat insurance which covers the liability for death or bodily injury to third parties.
Malaysia
Like land transport vehicles such as cars and trucks, all water transport vessels registered in Malaysia needs to have insurance issued in Malaysia.
Taiwan
According to The Law of Ships in Ministry of Transportation and Communications, all yacht owners are required to purchase insurance covering the liability for death or bodily injury to the passenger.
Thailand
According to Thailand commercial boating laws, any boat that carries passengers, must have compulsory passenger insurance.
No, you do not. Marsh YachtCover offers the option of combining both policies, providing coverage for the loss of, or damage to, the yacht as well as liabilities to third parties.
Under the Hull and Machinery (H&M) section, the physical damage section covers the loss or damage to the boat and its machinery — including the hull, engines, sails, personal property, and equipment necessary to operate the boat.
The liability section, sometimes referred to as Protection & Indemnity (P&I), covers your legal obligations to other parties, such as bodily injury, loss of life, pollution, or damage to a third party property while the boat is operating or under your ownership.
If you do not require H&M insurance, Marsh YachtCover also offers the option of a standalone liability policy.
Insurers generally consider various factors when determining the premium to charge for your yacht insurance. This includes but is not limited to the following:
i. General boat characteristics: value, length, age, material of hull, make type and number of engines.
ii. Skipper’s experience
iii. Mooring details
iv. Claims record
v. Deductible amount
vi. Navigational limit
vii. Limit of third party liability
viii. Additional safety equipment
ix. Recent survey reports
In the event of a claim, policy holders need to report the incident immediately. You will need to download and submit the Marsh YachtCover claims form with any supporting documents to your broker.
Read our article ‘A hassle-free guide to filing a yacht insurance claim’ to learn more about the claims process.
Insurers generally accept an owner’s estimate of the value of a yacht, which should reflect current market value. It is accepted that the practical method for an owner to estimate value is by giving the purchase price, unless particular factors support a different view, such as if the boat is put up for sale or a professional valuation has been obtained.
You are not obliged to have your yacht valued prior to obtaining or renewing insurance, nor is it customary for insurers to make such a request. You should, however, ensure that you are clear about the meaning of ‘market value’ and other similar terms in proposal forms and policies, and be mindful of the importance of disclosing all material information.
Marsh YachtCover accepts yachts valued above US$500,000 and up to a maximum of US$18 million.
Read our article ’Yacht Insurance - what every owner should know’ to learn more.
A deductible is an amount the insurer will subtract from a loss before paying the claim amount up to the policy limit.
Marsh YachtCover typically uses an “Agreed Value” wording, meaning your insurer will pay the entire agreed amount of the yacht, with no deductible, in the event of total loss.
In the event of a partial loss, cover is generally on a new for old replacement basis, except for materials that are subject to higher levels of normal wear and tear such as sails and covers of canvas or other like materials, in which case there may be an allowance for depreciation.
Insurers are liable only for the reasonable cost of repairs.
Some territories, for example Hong Kong, have a mandatory minimum limit for third-party cover — check your local regulations. Also check with your marina or those that you wish to call for guidance, as they too may have minimum insurance requirements.
Marsh, the world’s largest insurance broker and risk advisor, is dedicated to helping clients globally and in Asia manage risk effectively. Leveraging strong historical relationships with global carriers and robust technology and data capabilities, Marsh’s long-standing expertise in designing, developing, and implementing innovative and efficient risk solutions across diverse industries and geographies delivers sustainable benefits for clients and empowers them to take advantage of opportunities that foster resilient business growth and expansion.