Hong Kong’s iconic vacationer attraction, Jumbo Floating Restaurant, was pressured to go away its house behind. Having confronted monetary troubles for years, its firm, Aberdeen Restaurant Enterprises, lastly introduced its departure. Nonetheless, its first journey exterior of Hong Kong was additionally shrouded in thriller.
First, Jumbo was mentioned to have sunk on its method to Cambodia earlier than the corporate backtracked to make clear that whereas it has capsized close to the Xisha Islands within the South China Sea, it’s nonetheless afloat. As residents/HongKongers speculated on whether or not this was a calculated rip-off for an insurance coverage payout, the corporate claimed that it might not obtain any.
On this Kwiksure article, we’ll check out why Jumbo obtained no insurance coverage payout and what property and casualty insurance coverage can do for you.
What’s property and casualty insurance coverage?
Let’s get you in control with what property and casualty insurance coverage is earlier than diving into this fascinating case examine. Also called P&C insurance coverage, it financially protects enterprise house owners from legal responsibility or damages in case of disasters or accidents. Notably, it could actually additionally cowl much less tangible components similar to your small business fame.
People might safe property and casualty insurance coverage within the type of car and/or house insurance coverage. Put merely, property and casualty insurance coverage could be thought-about individually. Property insurance coverage covers your possessions, whereas casualty insurance coverage affords legal responsibility protection.
Boat insurance coverage, a kind of property & casualty insurance coverage
All boat or marine pleasure craft house owners in Hong Kong are legally required to safe boat insurance coverage. In fact, Jumbo Floating Restaurant isn’t any exception. Very like automotive insurance coverage right here, there are two sorts of boat insurance coverage insurance policies: third-party and complete.
Third-party boat insurance coverage
The previous protects the legal responsibility of the third get together, similar to compensation for property harm or private damage/demise in collisions or accidents.
Complete boat insurance coverage
However, a complete plan contains the entire above plus protection for any harm completed to the vessel itself. As an illustration, a sunken boat might obtain compensation provided that it’s beneath a complete coverage. Some insurance policies additionally embrace salvage prices although it’s clever to test together with your insurer earlier than shopping for.
Remember the fact that it’s usually tougher for older boats to safe complete insurance coverage as they’ve a better threat profile. Except in any other case specified, vessels are lined in Hong Kong waters solely. It’s subsequently good apply to tell your insurer prematurely in the event you’ll be crusing exterior of Hong Kong or earlier than buying the plan altogether.
Why was there no insurance coverage payout for Jumbo Floating Restaurant?
“The vessel is roofed by a ‘Safety and Indemnity Cowl for Third Events Legal responsibility’ in accordance with maritime rules. This insurance coverage covers third get together losses, not losses to the corporate,” mentioned Aberdeen Restaurant Enterprises.
Based on the Hong Kong Maritime Ordinance, delivery firms are required to buy a minimum of HKD $5 million value of non-public damage safety for all vessels. Aberdeen Restaurant Enterprises, the corporate that owns Jumbo Floating Restaurant, confirms that they possess third-party boat insurance coverage solely. This explains why they didn’t obtain any insurance coverage payout for the capsized vessel.
Towing straight out to sea vs. on a semi-submersible
Sea Palace Floating Restaurant, the sister boat of Jumbo Floating Restaurant, was transported to the Philippines on a specialised semi-submersible earlier this 12 months. When requested why they towed Jumbo instantly out to sea this time, consultants identified that there’s a low provide of semi-submersibles out there. The price of towing will also be upwards of a whole bunch of thousands and thousands of Hong Kong {dollars}. Thus, on account of price issues, Aberdeen Restaurant Enterprises may need opted out {of professional} semi-submersible.
Having mentioned that, the delivery firm emphasised that direct towing to the ocean is consistent with worldwide maritime rules and practices. Earlier than leaving the port, marine engineering consultants had been employed to examine the hull construction and set up the hoardings. What’s extra, the voyage was authorized by the federal government. The delivery firm had additionally entrusted a licensed third get together to rearrange for a tugboat firm to rent an professional to conduct the voyage.
