Yacht and Pleasure Craft Insurance in the UAE

Yacht and Pleasure Craft Insurance is intended for privately used boats and yachts. It may cover eligible physical loss or damage to the insured vessel and specified marine liabilities, subject to the issued policy wording, navigation limits, deductibles, conditions and exclusions.

Al Buhaira Insurance may consider professionally manufactured vessels operating within declared waters such as the UAE coastal waters, Arabian Gulf or Gulf of Oman. The vessel’s use, value, construction, age, condition, mooring location and navigation area must be accurately declared and accepted by the insurer.

What Yacht and Pleasure Craft Insurance May Cover

Depending on the issued policy, cover may include:

1. Hull and machinery: Eligible physical loss or damage to the vessel’s hull, machinery and permanently installed equipment.
2. Outboard motors: Declared outboard motors when specifically listed and accepted by the insurer.
3. Collision liability: Applicable legal liability arising from collision with another vessel, subject to the insured limit.
4. Third-party liability: Applicable legal liability for accidental third-party bodily injury or property damage arising from ownership or permitted use of the vessel.
5. Sue and labour expenses: Reasonable expenses incurred to avert or minimise an insured loss, subject to policy conditions.
6. Salvage and wreck removal: Eligible salvage costs or legally required wreck-removal expenses, subject to applicable limits.

Fire, theft, collision, grounding, storm or accidental damage are not automatically covered merely because the policy insures a yacht. The cause of loss must fall within the issued wording and must not be excluded.

Agreed Value and Current Market Value

Cover may be arranged on an agreed-value basis or a current-market-value basis. Under an agreed-value policy, the insured value is agreed when the policy is issued, subject to the settlement terms. Under a current-market-value basis, settlement may consider the vessel’s market value immediately before the loss.

The selected value should be supported by suitable purchase documents, valuation information or a marine survey. Deductibles, salvage, underinsurance and other settlement provisions may still apply.

Important Policy Conditions

1. Private pleasure use: Commercial charter, passenger transport, hire, reward or other business use is not automatically covered.
2. Navigation limits: The vessel should remain within the geographical area stated in the policy.
3. Operators: The vessel should be operated by authorised persons with the licences and experience required by the policy and applicable rules.
4. Mooring and storage: The declared marina, mooring, dry storage and seasonal lay-up arrangements should be followed.
5. Maintenance: The vessel, engines, safety equipment and protective systems should be maintained in serviceable condition.
6. Material changes: Changes to ownership, value, use, navigation area, engines or mooring location should be disclosed.

Optional Extensions

Subject to underwriting acceptance, the policy may be extended to include declared personal effects, a road trailer, passenger liability, uninsured-boater protection or other specified interests.

Racing, participation in organised events, water sports, towing, transit by road, use outside the declared navigation area and commercial charter require specific consideration. They should not be assumed to be covered unless expressly included.

Common Exclusions and Limitations

Yacht and Pleasure Craft policies may exclude or restrict:

1. Wear and tear: Gradual deterioration, corrosion, osmosis, fouling, rot or lack of maintenance.
2. Mechanical breakdown: Internal machinery failure without resulting insured damage, depending on the wording.
3. Defective parts: The cost of correcting defective design, materials or workmanship may be excluded.
4. Unseaworthiness: Loss arising when the vessel is knowingly operated in an unsafe or unseaworthy condition.
5. Unauthorised use: Commercial use, racing or operation outside agreed navigation limits without prior acceptance.
6. Unattended theft: Theft of removable equipment or personal effects where security requirements have not been met.
7. Excluded events: War, confiscation, deliberate acts and other exclusions stated in the policy.

What to Do After an Incident

1. Protect passengers and contact the relevant emergency authority if necessary.
2. Take reasonable steps to prevent further loss or environmental damage.
3. Notify Al Buhaira Insurance as soon as reasonably possible.
4. Report theft, collision or serious incidents to the relevant authority.
5. Record photographs, witness details and the circumstances of the incident.
6. Preserve damaged parts and obtain repair estimates when requested.
7. Do not admit liability or agree to a settlement without prior approval.

How to Request a Quotation

Yacht and pleasure craft owners can submit initial details through Al Buhaira Insurance’s dedicated quotation page. The quotation may consider the vessel type, builder, age, construction, value, engines, use, navigation area, mooring location, operator experience, survey findings and claims history.

A quotation does not confirm that insurance has started. Cover begins only after the required information has been reviewed, the terms have been accepted and the applicable policy documents have been issued.

Documents Required

The insurer may request documents and information such as:

1. Completed proposal or quotation form
2. Emirates ID or passport details
3. Vessel registration documents
4. Proof of ownership or purchase invoice
5. Vessel builder, model and manufacturing year
6. Hull identification and engine details
7. Current valuation or marine survey report
8. Recent photographs of the vessel
9. Declared navigation area and intended use
10. Mooring, marina or storage details
11. Operator licence and boating-experience details
12. Required third-party and passenger-liability limits
13. Previous insurance details and claims history
14. Lender or marina insurance requirements

Why Choose Al Buhaira Insurance?

1. Marine insurance range: Yacht and Pleasure Craft Insurance is available within Al Buhaira Insurance’s marine insurance products.
2. Dedicated quotation page: Vessel owners can submit initial vessel, use and navigation details online.
3. Valuation options: Cover may be considered on an agreed-value or current-market-value basis.
4. Vessel-based assessment: Quotations can consider the declared vessel, operating area, use, value and requested liability limits.
5. Policy and claims enquiries: Customers can contact Al Buhaira Insurance regarding issued policy terms or an incident under an existing policy.

Frequently Asked Questions