Hong Kong’s iconic tourist attraction, Jumbo Floating Restaurant, was forced to leave its home behind. Having faced financial troubles for years, its company, Aberdeen Restaurant Enterprises, finally announced its departure. However, its first trip outside of Hong Kong was also shrouded in mystery.
First, Jumbo was said to have sunk on its way to Cambodia before the company backtracked to clarify that while it has capsized near the Xisha Islands in the South China Sea, it is still afloat. As citizens/HongKongers speculated on whether this was a calculated scam for an insurance payout, the company claimed that it would not receive any.
In this Kwiksure article, we’ll take a look at why Jumbo received no insurance payout and what property and casualty insurance can do for you.
Boat insurance, a type of property & casualty insurance
All boat or marine pleasure craft owners in Hong Kong are legally required to secure boat insurance. Of course, Jumbo Floating Restaurant is no exception. Much like car insurance here, there are two types of boat insurance policies: third-party and comprehensive.
Third-party boat insurance
The former protects the liability of the third party, such as compensation for property damage or personal injury/death in collisions or accidents.
Comprehensive boat insurance
On the other hand, a comprehensive plan includes all of the above plus coverage for any damage done to the vessel itself. For instance, a sunken boat may receive compensation only if it’s under a comprehensive policy. Some policies also include salvage costs though it’s wise to check with your insurer before buying.
Keep in mind that it’s generally more difficult for older boats to secure comprehensive insurance as they have a higher risk profile. Unless otherwise specified, vessels are covered in Hong Kong waters only. It’s therefore good practice to inform your insurer in advance if you’ll be sailing outside of Hong Kong or before purchasing the plan altogether.
