LUXURY YACHT INSURANCE John Theed Sturge Taylor & Associates Sturge International Services 31 st May 2012

What is a luxury yacht

Size of the Market – 4, Metres

Under Construction – Metres

INSURANCE PROGRAMME * HULL INSURANCE * PROTECTION & INDEMNITY RISKS * CREW INSURANCE

HULL INSURANCE  Named Perils Policy Institute Yacht Clauses Institute Time Clauses  “All Risks” Policy American Yacht Form R12

ITEMS COVERED: 1)Hull and Materials, General Contents, Engines and Machinery and everything connected therewith, nothing excluded. This includes: Tenders, Outboards, Windsurfers, Personal Watercraft, Diving Gear and other Water Sports Equipment. 2) Personal Effects including Ship’s Cash

DEDUCTIBLE: Hull and Machinery etc EUR except Total Loss which payable in full. Diving Gear, EUR 200 or 0.50% except total loss of an Fixtures & Fittings, of the amount individual item which payable General Contents, claimed in full. Outboards, Personal Effects, Personal Watercraft, Ship’s Cash, Tenders, Windsurfers Electronic, Communications EUR 4,000 except total loss of an and Navigation Equipment individual item which payable in full. War Risks Nil

SPECIFIC COVERAGES  Accidental loss and/or damage.  Failure in the working mechanism of machinery or motor generators or other electrical machinery and their connections which causes the same to cease functioning or to function improperly.  Negligence and Latent Defect cover including the cost or repairing / replacing defective parts.  Inspection of the bottom of the vessel after grounding, even if no damage be found without application of any deductible.  War and Strikes including sabotage, vandalism, terrorism, blocking and trapping. Extended to include piracy.

Protection & Indemnity Risk Minimum limit – Sum Insured for the Yacht  American Yacht Form R12 includes Protection & Indemnity Risks ∆ British Marine ∆ Shipowners ∆ Steamship Mutual  Limit of Indemnity USD 500,000,000  Greek, Italian, Spanish Liability Certificates required  US Crew need to be declared

CREW INSURANCE  24/7  Unnamed Crew  No proposal forms  Excludes pre-existing conditions

Medical Expenses including repatriation expenses  Payable for 24 months from date of illness/injury  Dental Expenses following an accident or to alleviate alleviate pain or suffering  Scuba Diving  Sundry Hospital Expenses  Winter Sports Extension

Personal Accident Benefits automatically relate to individual salaries  Death & Capital Benefits 3 x salary  Continental Scale of Benefits  Salary Indemnity Accident 104 weeks Illness 52 weeks