1 min read: INSURANCE INFLUENCERS – RICHARD FINAN
Forging ahead to meet customers’ ever-changing needs The ancillary market has traditionally lagged behind...
The marine industry is still buoyant following a boom in boat sales towards the end of 2020, and with the summer months just around the corner, we expect to see many boat-owners taking to the waterways of Britain to enjoy the sights and scenery from aboard their yachts, dinghies, narrowboats and RIBS.
Though foreign holidays are undoubtedly back on the menu as international borders re-open, the current economic pinch may persuade many holidaymakers to stay closer to home, instead enjoying the simple, if often chilly, pleasures of the Great British Summer.
Although this is good news for the UK marine industry; as new, and seasoned boating enthusiasts take to the water, we expect to see a raft of calls to our team of marine legal experts from policyholders facing legal challenges arising from their hobby.
We’ve already seen an increase in policyholders engaging in disputes with sellers and surveyors over the purchase of a new or used vessel.
When it comes to the sale of second-hand boats, the general legal principle of “caveat emptor”, or “let the buyer beware” places the onus on the buyer to find out as much about the vessel as possible before purchasing. However, the seller has no legal requirement to disclose known faults or prior incidents unless directly asked by the buyer. This principle is well understood by seasoned boating enthusiasts, however for many newcomers to recreational boating, this may come as an unwelcome surprise, particularly those who purchase a vessel ‘as is’ and either do not know or do not understand the right questions to ask of the buyer to ensure that their vessel is in good, and safe, condition.
In these instances, it’s always wise, particularly for higher-value purchases, for the buyer to employ the services of a surveyor, an expert that can undertake a comprehensive survey of the vessel and produce a report detailing all faults or areas that might cause the buyer problems in future. Though this does offer a good measure of security to the buyer, we’re seeing cases where the surveyor has either missed or not reported on a defect that existed at the time of purchase; in these cases, the buyer may take legal action against the surveyor.
Many calls arise from new boat-owners, who may be unfamiliar with the responsibilities and expectations they face.
Unlike the purchase and use of motor vehicles, you do not need to have any experience or qualifications to take to the water. Though the Environment Agency does outline a series of rules and regulations to follow whilst using Britain’s waterways, these are not tested or evidenced in the same way as the Highway Code.
Another concern is that while a person needs to be eighteen years of age to hold a Canal and River Trust boating license, there is no minimum age to skipper a vessel.
Therefore, there is a real risk that amateur boaters may fall foul of these rules and find themselves subject to navigational prosecution.
There are some basic common-sense approaches that can be taken to avoid legal disputes around the purchase and ownership of a pleasure boat; for example, the use of a reputable seller or surveyor, undertaking thorough research before deciding to buy a boat and making sure an individual has excellent knowledge of the rules and regulations that exist around the country.
However, we believe that having a valid Legal Expenses Insurance (LEI) policy in place that can cover marine activity is invaluable in case of a costly and complex legal dispute.
Arc Legal are the leading Marine LEI in the UK, providing cover via the majority of UK pleasure craft insurers, and supported by a team of highly qualified marine lawyers ready to support our policyholders with any queries or claims.
Marine LEI also offers legal protection for a range of other issues faced including:
Richard Finan, Director of Strategic Development
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