US Obamacare Impacts the Global Marine Industry
The Affordable Care Act (ACA), otherwise known as Obamacare, the recent healthcare plan in the United States, is affecting the international superyacht industry, according to yacht insurance expert Eva Maria Karlsson of Superyacht Insurance Group (SYIG). Maria, who is president/broker at SYIG, said, “The biggest challenge presently is Obamacare. Interestingly enough, it’s actually affecting the international marine industry, in that we now have to cope with tighter guidelines regarding time spent in-and-out of the U.S. waters. Most underwriters require that the yachts spend at least six months outside the U.S. in a 12-month period. It doesn’t matter that the yacht is registered outside the U.S. and the crew are non-U.S. “Some underwriters can’t even provide coverage for U.S.
XL Offers KRE Cover to Yacht Owners
To help yacht owners navigate increasingly risky waters, XL Group is adding a Kidnap, Ransom & Extortion (KRE) Crisis endorsement to ShipShape, and ShipShape Plus, its recreational marine insurance coverages. "Crisis events like kidnapping, disappearance and hijack are increasingly real threats, especially on open seas," explained Denise Balan, Country Manager of XL's US Crisis Management business which developed the KRE endorsement. According to Rick Salway, Vice President of XL Group's Recreational Marine business, "Our ShipShape insurance pulls together the most relevant, comprehensive insurance coverages for yacht owners and other recreational watercrafts under one policy.
Shipowners’ Club Launches Simplified, All Risk Policy for Yachts
The Shipowners’ Club, one of the few P&I Clubs to offer specialist yacht insurance, has taken a new approach to yacht liability, offering an All-Risk policy that seeks to de-mystify aspects of the traditional wording contained in typical P&I insurance Rules and making the conditions understandable to non-specialist yachtsmen and brokers. Conventional yacht insurance policies offered by both general commercial insurers and P&I clubs have traditionally featured complex wording using legal and maritime jargon which can be difficult to understand for anyone who is not a specialist in marine insurance. Ian Ferns, Shipowners’ Research and Development Manager…
Key Elements of Yacht Insurance, Q&A
Accidents happen. That comes as no surprise to those in the insurance industry, but what may be a surprise is the fact that the majority of maritime accidents occur in good weather with perfect visibility. In the following Q&A, Joseph McNulty, founding member of Carroll McNulty & Kull, joins Richard Furman and John Orzel, members of the same law firm, in a discussion on the key elements of marine insurance and what underwriters and claims professionals need to know about federal laws governing the maritime industry. Q. Let's start at the beginning. What is marine insurance?
Negligent Homicide with Yacht Leads to Loss of Coverage
The U.S. Court of Appeals for the First Circuit ruled that, where the owner of a yacht was convicted of negligent homicide in connection with a fatal collision, the insurance company is not obligated to defend under a policy excluding losses “criminally caused or incurred” by the insured. In the instant case, plaintiff was operating his yacht when it collided with another boat, killing one of the passengers of the boat. He was convicted of negligent homicide for failing to keep a proper lookout. Plaintiff was also sued for wrongful death by the widow and executrix of the deceased. Plaintiff sought declaratory judgment that his yacht insurance company was obligated to defend the wrongful death action.
Legal Notes
President George Bush has signed into law legislation repealing a four year old rule imposing a 50% duty on the cost of routine repairs and maintenance carried out by U.S. merchant mariners while their vessel is at sea. The elimination of the duty, which customs authorities have levied on US-flag carriers since April 2001, represents a victory for the domestic shipowning community. The community has lobbied hard against it since its introduction. President Bush signed into law the Intelligence Reform and Terrorism Prevention Act of 2004 (S. 2845). The major emphasis of the legislation is reform of the U.S. intelligence organization. Other measures, though, may impact the maritime community.
