What are the Common Risks Covered by Yacht Insurance?
Yacht insurance usually covers risks like damage from theft, collisions, fire, and natural disasters. It also covers liability coverage from property damage and third-party injuries caused by the yacht. Other coverage options include medical payments, personal effects, and towing assistance. Some yacht insurance companies in the UAE offer policies that offer protection against piracy and vandalism.
Are There Any Local Regulations Affecting Yacht Insurance in the UAE?
Yacht insurance is not legally mandatory in the UAE. However, docks and marinas usually require it for docking. The UAE Maritime Code administers maritime activities, including yacht insurance requirements. If you want to get insurance coverage for your yacht, you must comply with the safety standards. You must also ensure the insurance policy for your yacht meets UAE regulatory standards.
How to Find Reputable Insurers in Dubai or Abu Dhabi?
Finding credible yacht insurance companies in Dubai or Abu Dhabi requires thorough research. You can search online and read reviews about insurance companies. Look for companies with a strong presence in Dubai or Abu Dhabi and positive customer feedback. You can also seek suggestions from marinas, yacht clubs, and owners. Some reliable yacht insurance companies in the region include NGI, Al Buhaira National Insurance, and Union Insurance.
What are the Typical Deductibles for Yacht Insurance?
It usually ranges between 1% and 5% of the value insured. However, this depends on the yacht insurance policy and the company. For instance, if the yacht’s value is AED 1,000,000, it will have a deductible between AED 10,000 and AED 50,000. A higher deductible is directly proportional to lower premium costs but may have increased out-of-pocket expenses in case of a claim.
How Do You File a Claim in Case of an Accident?
Simply notify your insurer to file a claim. Provide all the details of the accident and submit a completed “claim form” with additional documents like repair estimates, police reports, and photographs. Make sure you cooperate with the company’s investigation and follow the team’s instructions for repairs and replacements for a successful procedure.
Are there any Specific Requirements for Insuring Luxury Yachts?
Insuring a luxury yacht requires additional documentation, such as a complete and detailed survey report, ownership proof, and maintenance records. Insurance companies may also need higher liability coverage and safety equipment on board.
What is the Claims Process Timeline?
The claim process for yacht insurance in the UAE takes between 15 and 21 working days. Submit the required documents, including repair estimates and photos, after notifying your insurer. The insurance company will review the claim and proceed with repairs and replacements after approving the claim.
Can I Get Coverage for Crew Members’ Injuries?
Most yacht insurance companies in the UAE cover crew members’ injuries, including disability benefits, medical expenses, and death benefits. Thus, this coverage provided financial protection for injuries while on board the yacht.
Is There a Maximum Age Limit for Insuring Yachts in the UAE?
There is no strict or maximum age limit for yacht insurance in the UAE. However, older yachts attract higher premiums because they have more risks of repairs, replacements, and maintenance procedures.
What are the Common Exclusions in Yacht Insurance Policies?
Common exclusions in yacht insurance policies include gradual deterioration, wear and tear, and damage from lack of maintenance. Make sure you always maintain a yacht and establish a budget to cover the cost of yacht maintenance. Other exclusions are:
- Intentional damage
- Illegal activities
- Racing
Some companies exclude insurance coverage for certain risky areas or during specific weather conditions.
How Can I Ensure My Policy Covers Navigation Outside UAE Waters?
You can request an endorsement or extension from the yacht insurance company. However, this requires extra premiums and compliance with safety requirements. Therefore, you must read the policy “T&C” to confirm the coverage for international waters.
Final Words About Yacht Insurance Costs
Yacht insurance costs depend on various factors, such as the yacht’s cost size, age, condition, and insurance company. Therefore, the size and cost of a 100-foot yacht will have different insurance expenses than the 70 feet vessels. Always perform thorough research to choose a reliable yacht insurance policy.
