I have had two yachts and I insured both of them with Northernreef Insurance / Edward William and up until just recently had no concerns about them, probably because I had not had cause to make a claim.
In January 2019 I unfortunately collided with another vessel - due to gears remaining jammed in forward gear - and the damage to the other vessel was in excess of $16,000.00AUD.
Since lodging the claim I have been trying get Edward William to either accept or reject the claim. I have gone through all their terms and conditions thoroughly and have discovered a number of clauses that effectively mean:-
1. Unless your motor(s) and gearbox are under 5 years old - you are not covered for damage to your vessel.
2. In the case of a third party claim, such as mine, I have to pay for the repairs myself and then get compensation from the Insurer. However they make it clear that If I pay for the repairs then I have admitted to guilt so no claim will be accepted,
3. If a third party vessel is damaged then the owner of the third party vessel has to make a claim with his insurance and they contact Edward William for compensation and then decide if they will or will not compensate.
4. If a third party vessel is not insured then they will not accept your claim.
I had a solicitor look over the Insurance Contract and they advised me that it is pretty well worthless and to fit it legally would be a 100% loss.
If you have an Edward William policy then please the following Northern Reef Yacht Clauses carefully..:
SECTION 1 - Accidental Loss or Damage to your Vessel.
READ The whole clause paying particular attention to " - The engine(s) or attached gearboxes and transmission......"
SECTION 2 - Your Liability to Others
READ - What we do not cover
CLAUSE #15 sub item 3 "Any other policy of insurance..." REMEMBER this is what they don't cover.
I do suggest if you have a Northern Reef policy through Edward William then seriously look at getting new insurance from another more reputable Insurance company.
Insurance is only good if they pay the claim. I worked as a consultant in insurance for a few years. In my view it is too often a scam. Premiums are irrelevant in deciding on obtaining insurance, paying claims is the only criteria.
A mate of mine had his house insured with APIA. They refused to pay their own assessors estimate of the damage.
What led you to choose these companies? They all look to be based overseas with no local representation?
northernreef.net/
edwardwilliam.com/
I have had two yachts and I insured both of them with Northernreef Insurance / Edward William and up until just recently had no concerns about them, probably because I had not had cause to make a claim.
Select to expand quoteDavid88 said..
What led you to choose these companies? They all look to be based overseas with no local representation?
northernreef.net/
edwardwilliam.com/
They have an Australian Agent - DGMARINE based in the Sunshine coast and I went through him. I will be starting a claim against him through ASIC as he is not registered with AFCA (Australian Financial Complaints Assoc which has taken over from the Financial Ombudsman) for non-disclosure and not being registered.
Waterlad,
Sorry for the long response. I work in insurance and have read the policy on line for Northernreef that I found on their website, I hope it is the same policy. I will address the points re cover you made above;
1. The cover re the engine over 5 year is for damage to the engine only resulting from the failure of a part, and not the remainder of the vessel. The damage to the motor having deemed to be caused by a part that has failed due to wear and tear. If you have an accident because of an engine part that fails this is not excluded from the policy, only any repairs to the engine that maybe required. Of more concern is exclusion clause 31 which if interpreted broadly may exclude any damage. I think however that a third party umpire would interpret this in your favour and narrowly to mean the damage had to be a direct result of the failure.
2. You are correct, you can not may any offers to the third party or you may void cover. This is a standard type clause on most policies dealing with liability. You are not to pay for repairs and the policy does not note this, you need to lodge the claim and details with your insurer within 21 days notifying them of the situation and possible liabilities (damage to third party boat) that may arise from the incident.
3. This is the normal progression of events. Same as car accident (forgetting knock for knock agreements). Both parties get their vehicles repaired by their own insurance company. They decision will then lie with the insurance company as to whether they wish to recover the money from the party at fault. They will contact the other insurer direct.
4. You have not interpreted this correctly. If the third party does not have insurance then they will need to write a letter of demand (usually via a solicitor) re the repairs and pass this to yourself or directly to your insurance company. If you received it then you, without admitting any fault, pass this letter to your insurance company. The policy responds if you are found to be negligent.
Of more concern would be general exclusion excluding cover - 7.32 From any action brought in a court of law outside of Uruguay or a court that applies law that is not Uruguayan law.
Usual disclaimer - this is general advice only and legal input should be sought at all times.
Good luck!
Thanks for the response Strongie. Much appreciated.
However, have you ever lodged a Claim with this company? They constantly move the goal posts or quote another clause and then change their minds and state something else. Have you had any dealings with this company or Edward William, their agents in Spain.
The actions and clauses I have stated are as a direct result of emails I have received them
