Insurance Issues

[cwjohm]

Hi

In 10 years and 5 boats I have not had to make an insurance claim.

I currently have a 45' cat.

Recently, my anchor chain snapped and the boat ran aground, tearing holes in the minikeels, and significantly damaging one rudder. The boat is very solidly built so I managed to sail home utilising one rudder and the boat is now on the hard being repaired.

The boat is insured with Pantaenius.

The insurer has no problems with the incident being covered by the policy but is arguing about the quantum.

To cut a long story short there are two clauses in the PDS. One states that all parts (not defined) shall have a 30% deduction if over 2 years old. The other states that the Hull (defined) shall be covered for all costs.

Upon receiving the shipright's quote for repair of the hulls, Pantaenius have gone to extraordinary lengths to deconstruct the quote such that it refers to 'parts" which they claim should have the 30% deduction, this despite the clear definition of exactly what a "Hull" is which clearly covers all of the works required.

I of course have contested this and we are in the mode of 15 days for the first review by Pantaenius and then failing that another 20 days for the underwriter review and then potentially months of review by the Financial Complaints Authority.

Fortunately, I have the resources to get the boat repaired and then argue the case with Pantaenius over time, but there are other boats in the yard who are more cash constrained who are waiting for these complaints hearings to complete before they can continue. Talking with these people it appears that the tactic pursued by Pantaenius is to make a suboptimal cash offer and then rely on the desperation of the affected party to accept said offer.

My questions are :-

Is this issue of denying the claim on any specious grounds and then delaying a decision over a long period specific to Pantaenius or do all insurance companies operate this way.

What is the experience of other sailors in this regard. In your circumstances did you accept the suboptimal offer as stay the course.

Is there a marine insurance company whereby you can pay extra in premiums where they will honour your full claim (assuming the claim is legit) without haggling as to the quantum of the claim based on fine print or any other specious argument.

[C420sailor]

Welcome to marine insurance companies. They’re hot garbage.

I’ve had to make claims on cars, motorcycles, even an airplane. No problems, relatively simple contracts. Boat insurers take claim avoidance to the next level. My aviation policy is Barney simple compared to the boat policy (which they denied a big claim on, unsurprisingly).

Having been denied for hull damage before, it sounds like this is par for the course. Deny deny deny, maybe low ball you, hope you get impatient and worn down and just accept it...and also hope you don’t have the $$$ to file a lawsuit.

[s/v Moondancer]

We had a substantial claim with Markel when a rogue wave inundated our electrical system and engine. They paid promptly and in full without a single problem…A truly outstanding company and a delight to deal with.

[LittleWing77]

Originally Posted by cwjohm

Is this issue of denying the claim on any specious grounds and then delaying a decision over a long period specific to Pantaenius or do all insurance companies operate this way.

This is purely scuttlebutt, CW, but I've heard that most insurance companies deny claims as a first response...they get to keep more $$ that way, unless a claimant is motivated and/or able enough to push back...

Completely immoral and not in good faith, but this is the state of corporations today.

Best of luck with your repairs and hope you're back out on the water soon!
Warmly,
LittleWing77