Insurance policies include an amount for Third Party Liability. This is the amount of cover (subject to the usual policy terms) you are insured for, where you may be legally liable for accidental loss of damage to other property, as the result of a collision or accident. Cover is also provided for Death or Bodily Injury, although under NZ Law there is virtually no ability to sue for bodily injury. However, the Sentencing Amendment Act 2014 now allows the courts to order a person at fault to compensate victims of bodily injury for their financial losses over and above what ACC pays, by way of reparation. This ‘top up’ ordered by a court can only apply where the person at fault has been convicted of a crime and is being sentenced. Policy exclusions (such as operating the vessel when under the influence of alcohol) continue to operate for Third Party Liability claims.
It is important to note the policy does not protect you for all the risks you face, particularly around legal costs from unexpected lawsuits or prosecutions. Potential examples might be:-
- A prosecution under the Maritime Transport Act for ‘operating a vessel in a manner causing unnecessary danger or risk’;
- Failing to secure a boat to a trailer, the boat falls from the trailer, causing death/injury – the Police prosecute for careless use causing death/injury:
Defending charges brought against you (where you have a reasonable case of defence) can be hugely expensive.
Whilst it is generally illegal to insure against fines, Nautical can offer an insurance that provides cover for Legal Expenses. These are the costs for defending an action brought against you. Not only will it protect you with issues involving your boat, it is also a 24/7 cover designed to cover you at home, work and in your car.
If you would kike to know more about this product, please email firstname.lastname@example.org or call us on 03384 1694 and we will send you information.