Is the cost of salvage part of CRT mandatory Third Party insurance cover

[Horace42]

Without fully comprehensive cover I would have to stand the whole cost of the loss of my boat - such as for fire and theft - but that is a risk I can chose to accept.

 

But what if the loss is due to accidental sinking - as happens to boats all too often it seems.  Although it would be annoying and sad, it would not be a financial disaster for me (my boat is not worth much due to rust).

 

But what would be a problem would be the high cost of urgent recovery by contractors for salvage work (eg. sinking in a lock or bridge hole) - and then charged to me with little choice by to pay it.

 

However, it seems maintaining navigation is something of direct benefit to thirds parties - is salvage embodied in CRT requirements as part of the mandatory insurance.

 

Fully comp is OK, but jeopardised by rust conditions, in my case, related to maintenance (or lack of for re-plating), that has no immediate effect on 'seaworthiness' but if not carried out could be used by the insurance company to invalidate a claim......and worse.... apparently could also invalidate a big payout indemnity third party claim.

 

Just asking.

[Rob-M]

Judging by this taken from the CRT website I would suggest salvage cover isn't mandatory...

 

Boat insurance

The cost will vary depending on the age and type of boat. Plus the type of cover you want.

You need third party insurance cover for at least £2,000,000 before you buy a boat licence.

This safeguards you, the owner or person in charge of the boat, from claims made against you for injury or damage in the event your boat is involved in an accident.

You may also choose to take out a comprehensive policy to cover your own boat, its contents and crew.

Read the small print - is the cover right for you

When buying insurance read the small print carefully, especially when it comes to salvage costs should the worst happen. Not all policies cover salvage following a sinking or a fire and the recovery costs can often be thousands of pounds.

[Alan de Enfield]

22 minutes ago, Horace42 said:

But what would be a problem would be the high cost of urgent recovery by contractors for salvage work (eg. sinking in a lock or bridge hole) - and then charged to me with little choice by to pay it.

The Licence T&Cs state :

 

INSURANCE REQUIREMENT
As a boat licence holder, you are very likely to be responsible for any injury or damage caused by you or the Boat. Damages could be substantial and it is therefore a requirement that you have third party liability insurance for the Boat.

 

Causing a pollution incident, or blocking the navigation would certainly involve 3rd party costs. Lifting the boat out would not be 3rd party and would be at your expense.

 

Many boat insurers (I don't know about Inland waterway insurers) do automatically cover you for removal / recovery of a sunken boat.

Probably best to check with your insurer.

 

This is in my Insurance 'small print'

 

• We will cover your legal liability to compensate other people if someone dies or is injured, or property is lost or damaged as a result of your interest in “Sea
Wolf” up to a limit of £5,000,000 in respect of any one accident (which shall be deemed to include a series of accidents occurring in connection with or arising
out of any one event) but unlimited in aggregate.
• We will also pay for law costs incurred in settling or defending any claim providing we have given written consent.
• Subject to the policy terms and limitations, cover extends to any person in charge of“Sea Wolf” with your permission, but not to persons employed by you.
• We will pay for all expenses properly incurred by you in connection with Official Inquiries, and Coroner’s Inquests.
• We will pay reasonable costs of attempted or actual raising, removal or destruction of wreck resulting from loss or damage covered by this insurance.

 

 

The policy for the Cat quotes :

 

Your Insurers will cover You for:

2.1 all sums (not exceeding the sums stated in Your
Schedule) that You legally have to pay as a
result of owning or having an insurable interest
in Your Craft noted in Your Schedule,
including any legal liability arising when Your
Craft is being used, navigated or in the custody
or control of anyone else with Your permission,
resulting in:
i) the death of, or injury to, any other person, or
any other person insured by this Policy,
including anyone getting on or off or
travelling on Your Craft;
ii) damage to any other property;
iii) the raising or attempted raising, removing or
destroying of the wreck of Your Craft;
iv) pollution caused by Your Craft as a result of
loss or damage that Your Insurers insure;

Edited April 9, 2019 by Alan de Enfield

[dmr]

There's a big sunken boat just down from here that has been sunk for many months, probably many years. I suspect its going to cost CaRT a lot of money to move it. Maybe they will just let it decompose (its wood) but it looks unsightly and sunk boats are a target for vandalism.I suspect that many of the sunken boats that I see are abandoned so have no insurance. Some maybe never had insurance, others I suspect it ran out before or soon after the boat sank.

What can be done? One way or another its us who have to pay. I have pondered if all insurance policies should have a salvage clause that extends for one year after the policy ends,  which should give CaRT long enough to remove uninsured boats. But then again removing a floating abandoned boat is probably not that much cheaper than removing a sunk one.

 

..............Dave

[David Mack]

Basic Boat's third party cover includes salvage costs.

[Detling]

The salvage/removal cost of the Costa Concordia was about 4 times the cost to build her. The insurance did pay but I guess it was comprehensive.

 

[Arthur Marshall]

1 hour ago, David Mack said:

Basic Boat's third party cover includes salvage costs.

And is about eighty quid a year. I could look it up... No survey required, which is handy for an old tub like mine. With that and RCR for the small stuff and a few friends around the place who are handy with welders I don't worry too much. 

[bigray]

11 hours ago, Alan de Enfield said:

The Licence T&Cs state :

 

INSURANCE REQUIREMENT
As a boat licence holder, you are very likely to be responsible for any injury or damage caused by you or the Boat. Damages could be substantial and it is therefore a requirement that you have third party liability insurance for the Boat.

 

Causing a pollution incident, or blocking the navigation would certainly involve 3rd party costs. Lifting the boat out would not be 3rd party and would be at your expense.

 

Many boat insurers (I don't know about Inland waterway insurers) do automatically cover you for removal / recovery of a sunken boat.

Probably best to check with your insurer.

 

This is in my Insurance 'small print'

 

• Subject to the policy terms and limitations, cover extends to any person in charge of“Sea Wolf” with your permission, but not to persons employed by you.
 

 

I wonder if this purely relates to employed by you where the employment involves use of the boat or if for example you are a builder and let one of your employees borrow it for the weekend? 

[Alan de Enfield]

9 minutes ago, bigray said:

I wonder if this purely relates to employed by you where the employment involves use of the boat or if for example you are a builder and let one of your employees borrow it for the weekend? 

It relates to 'paying someone to work on your boat', ie deliver it, or move it, or lift it, etc etc.

In those case the person 'employed' should have their own insurance cover.

[David Mack]

25 minutes ago, Alan de Enfield said:

It relates to 'paying someone to work on your boat', ie deliver it, or move it, or lift it, etc etc.

In those case the person 'employed' should have their own insurance cover.

But if in doubt, confirm with your insurance company. 

[Alan de Enfield]

4 minutes ago, David Mack said:

But if in doubt, confirm with your insurance company. 

Good advice - I guess every companies cover and T&C's will vary slightly.

[Mike Todd]

13 hours ago, David Mack said:

But if in doubt, confirm with your insurance company. 

Which is why most marinas have Conditions that include a requirement for moorer's contractors to check in with the marina so that insurance cover can be checked.

[Scholar Gypsy]

I seem to remember that CRT insist on extra salvage cover for boats using the London Docklands waterways.