The No. 1 Yachting Clause contains some very useful matter. A few years ago, for example, a 20-tonner left by the tide high and dry on the mud at one of our West of England ports, with a leg at each side to support her (her copper required cleaning), fell over and was considerably damaged. On the owner, who had insured his yacht at the beginning of the season, claiming for the damage she had sustained, the claim was disallowed, and after the powers that be had been invoked, the case was given against the owner, the accident not having taken place on the high seas. The form under which the 20-tonner was insured could not have contained the No. 1 Yachting Clause, otherwise the claim would have been in favour of the owner. All contingencies of that kind are met under this clause.
The No. 2 Yachting Clause allows the yacht to voyage to any part of the world and over any seas.
The No. 3 and No. 4 Clauses explain themselves.
The Collision Clause is a very necessary addition to all Marine policies. In case of a collision with another vessel, although the yacht may be in fault, the underwriters are liable under the clause to pay up to three-fourths of the value of the policy towards the repairs of the damaged vessel or the general repairs. The writer has a policy before him for 1,000l. with the Collision Clause inserted. Let it be supposed that the yacht for which this policy was taken out has run into another vessel, which has received damage to the amount of 800l., then the underwriters are responsible up to the amount of 750l.
Collisions with piers or the removal of obstructions do not come under this clause, and if thought worth insuring against, have to be freed by what has been termed in this notice No. 7, or the Prevention Clause No. 1. This clause enables the insurer to claim for the fourth quarter over and above the three quarters for which the underwriters are liable under the Collision Clause. It will enable him to hand over the business and cost of raising and removing from a fairway, for example, any vessel that he may have sunk through collision with his yacht, or repair any piers that may have been damaged through contact with the boat. Few, however, have this clause inserted in their policies, as so small a risk can safely be borne by an owner.
No. 8, or the Prevention Clause No. 2, only concerns yachtsmen who race their vessels. Its correct title is 'The Racing Clause.' This wipes out those few words from the policy that free the underwriters from all liability in the Twenty-pound Clause, and makes them responsible for total or other loss, should such take place, while the yacht is in the act of racing; for no simple policy or ordinary form provides against 'racing risks.'
The above remarks refer to policies of insurance on yachts of all sizes; the following will be interesting to the owners of small craft, as giving the average premiums that should be paid under the several conditions named.
For a 250l. policy covering five months, two guineas per cent. This policy should include the Twenty-pound and Collision Clauses.
The Protection Clause to cover five months should be added for the payment of 5 per cent. extra.
The Racing Protection Clause covering a similar length of time should be inserted at the rate of 10 per cent. extra.