No. 2 Yachting Clause should allow the yacht to 'touch and stay at any ports or places whatsoever and wheresoever, and for any and all purposes.'
The No. 3 Yachting Clause makes the liability cover the hulls, spars, sails, materials, fittings, boats (including launch, steam or otherwise, if any), &c.
The No. 4 Yachting Clause is a promise to return a certain sum for every fifteen consecutive days cancelled, and for every fifteen consecutive days laid up dismantling, overhauling, repairing, altering, or fitting out.
No. 5 the Collision Clause.
No. 6 the Twenty-pound Clause.
No. 7 the Prevention Clause, No. 1.
No. 8 the Prevention Clause, No. 2.
With regard to the main clauses of the original Government form, it will be specially noticed that not one makes it necessary for the owner or skipper, or whoever may be in charge of the yacht, to be the holder of a Board of Trade Certificate. Then, after enumerating all the perils from which a vessel may run the risk of total loss, the form finishes up by stating that where only partial damage takes place, the underwriters are ready to pay an average for the repair of such damage at the rate of 3 per cent. That is to say, supposing a 10-tonner is insured at 900l. and she splits her mainsail and carries away her mast, which in its fall smashes up the boat, the policy will cover up to 27l. of the average value only, and the difference between that and the true value will become a loss to the insurer. This is known as the Average Clause.
To enable the insurer to claim on a partial loss to the full amount of that loss the Twenty-pound Clause is added, and for this in all policies over the value of 700l. a small extra premium has to be paid. This clause is decidedly in favour of the man who insures a large yacht, but is of little use to the owner of a small craft. In the first place, it leaves the underwriters liable only for losses above the value of 20l. and nothing under. It must be remembered that the general casualties on board a cruising yacht, when cruising only, are the carrying away of a bowsprit or topmast, the splitting of a topsail or spinnaker jib, and the whole lot would have to come to grief in a 10-tonner, for instance, before the owner would find his bill for damages sufficiently large to present to the underwriters for payment. With a 60-ton yacht it would be otherwise, as a topmast and topsail would alone run into 20l.; so it follows that the larger the yacht the more advantageous will be the addition of the Twenty-pound Clause, since the less will be the difficulty to make out a claim for a sum above that amount.
In a small 5-ton yacht for which the policy need not exceed 500l., the addition of this clause naturally lies in favour of the underwriters, for it is next to impossible for the yacht to receive such damage as will necessitate the outlay of 20l. to put her all to rights again. That is, such a catastrophe as must happen to oblige such an expenditure does not occur to one small yacht in a thousand, unless it brings with it at the same time very nearly, if not altogether, total loss. Some agents, however, are willing to lower the twenty and make the clause ten pounds, but of course this risk will mean again a slight extra payment. It is better for the small yacht-owner to pay for a ten-pound clause than have an extra clause which will be of no practical use to him.