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Making

A Claim

18 May 2023

Last revised

minutes

4

Reading time

It’s important to understand the claims process, in advance of an incident, to make sure that underwriters have no excuses when it comes to the crunch. If you’re an owner reading this because your yacht has just been involved in an incident, then you should contact us right away to make sure that you’re taking the appropriate advice.

minutes

4

Reading time

18 May 2023

Last revised

It’s important to understand the claims process, in advance of an incident, to make sure that underwriters have no excuses when it comes to the crunch. If you’re an owner reading this because your yacht has just been involved in an incident, then you should contact us right away to make sure that you’re taking the appropriate advice.

  • You must notify the underwriter, through your broker if your're using one, of a loss - and provide evidence within a specified time frame or (if none) a reasonable period.

  • You should take reasonable steps to minimize the loss in the event of an incident.

  • You are responsible for proving the amount and scope of the loss and that it was caused by a covered peril.

  • Both you and the underwriter have obligations of cooperation during the claims process.

  • Underwriters must pay valid claims within a reasonable timeframe, and delays may result in additional damages payable to you.

  • Subrogation allows the underwriter to recover money paid to the insured from the third party responsible for the loss.

  • Settlements reached with the underwriter can be invalidated if fraudulent misrepresentation by the insured is later discovered.

  • Double insurance can occur when both the yacht and its tender are insured separately, requiring coordination between insurers.

  • Independent advice may be necessary, as your interests anf those of the underwriter are not aligned.

  • You must not jeopardize the underwriter's subrogation rights by settling or abandoning a claim against a third party.

  • Subrogation allows the underwriter to recover money paid to the insured from the third party responsible for the loss.

  • Settlements reached with the underwriter can be invalidated if fraudulent misrepresentation by the insured is later discovered.

  • Double insurance can occur when both the yacht and its tender are insured separately, requiring coordination between insurers.

  • Independent advice may be necessary, as your interests anf those of the underwriter are not aligned.

  • You must not jeopardize the underwriter's subrogation rights by settling or abandoning a claim against a third party.