Special Notice

12 January 2021


Dear Members,

The Marine Office would like to bring to the attention of members, who have their craft insured with CMB Wing Lung Insurance Company Limited, a situation which may affect their insurance cover.

The situation occurred in early 2020 when an open speed boat was stolen from a mooring in Tai Tam Bay. The craft was tied up to its mooring buoy with two rope mooring lines, as all our members craft on swing moorings are, when the complete boat was stolen.

The owner has had his insurance claim for the theft of the speed boat rejected by the CMB Wing Lung Insurance Company Limited. In the letter to the owner from CMB Wing Lung Insurance Company Limited they state that;

The CMB Wing Lung Insurance Company Limited wish to clarify that the reference to “Securely moored” in the Policy Schedule not only appears in Warranty 8. “Typhoon Warranty (Signal No, #) (Or upwards) but also in Warranty 7. “Mooring Warranty”, which stipulates “It is warranted that, whenever not is use, the insured vessel shall be securely moored at the mooring place specified in the Schedule and all equipment, loose gear or sails, if any, shall be safely kept in a secure place.”  The insured vessel should at all times be securely moored when not in use. With respect, to moor a boat to a buoy using rope is just a normal method of attachment. As mentioned the police recommend pleasure craft owner to install suitable alarm system on board and secure the craft with stronger steel chain or anchor to prevent theft. Since you had not taken any of the aforementioned measures, we fail to see the insured craft was securely moored at the time of the loss.

The reference to the Police leaflet made by the CMB Wing Lung Insurance Company Limited is copied below (see the two images).

In effect the CMB Wing Lung Insurance Company Limited will not pay the claim for the stolen speed boat as the boat was not fitted with an alarm and it was not secured to the mooring with a stronger steel chain or anchor.

Using the worldwide method of tying the boat up to the mooring buoy with mooring ropes appears to be not considered by the CMB Wing Lung Insurance Company Limited as a secure method of mooring to a mooring buoy.

The Marine Office therefore advises all members with insurance coverage with the CMB Wing Lung Insurance Company Limited to check with the company whether the members craft is insured when tied up with rope mooring lines to a club mooring buoy.

Thank you

The Marine Office

 

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