Share Blog：

No insurance payout for Hong Kong’s capsized Jumbo Floating Restaurant

Author

Anthony Chan

Created On

2022-06-29

Edited On

2026-05-04

Text Size

Boat

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.

Table of contents

Boat insurance, a type of property & casualty insurance
Why was there no insurance payout for Jumbo Floating Restaurant?
Towing straight out to sea vs. on a semi-submersible

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.

比較全港逾60間保險公司報價，快而保汽車保險中介為你挑選最符合你要求的車保，立即報價！

Why was there no insurance payout for Jumbo Floating Restaurant?

“The vessel is covered by a ‘Protection and Indemnity Cover for Third Parties Liability’ in accordance with maritime regulations. This insurance covers third party losses, not losses to the company,” said Aberdeen Restaurant Enterprises.

According to the Hong Kong Maritime Ordinance, shipping companies are required to purchase at least HKD $5 million worth of personal injury protection for all vessels. Aberdeen Restaurant Enterprises, the company that owns Jumbo Floating Restaurant, confirms that they possess third-party boat insurance only. This explains why they didn’t receive any insurance 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 specialized semi-submersible earlier this year. When asked why they towed Jumbo directly out to sea this time, experts pointed out that there is a low supply of semi-submersibles in the market. The cost of towing can also be upwards of hundreds of millions of Hong Kong dollars. Thus, due to cost concerns, Aberdeen Restaurant Enterprises might have opted out of professional semi-submersible.

Having said that, the shipping company emphasized that direct towing to the sea is in line with international maritime regulations and practices. Before leaving the port, marine engineering experts had been hired to inspect the hull structure and install the hoardings. What’s more, the voyage was approved by the government. The shipping company had also entrusted a licensed third party to arrange for a tugboat company to hire an expert to conduct the voyage.

Follow us and be among the first to know!

Contact Kwiksure to get boat insurance quotes

Kwiksure has over 20 years of experience in the boat insurance industry, comparing quotes from over 60 insurers in Hong Kong. Use our online quotation tool now to get a free boat insurance quote!

The above information is for reference only. Kwiksure takes no responsibility for the accuracy and timeliness of the information. For the coverage, mode of compensation, benefit limit and premium levels of any specific insurance plan, please refer to the relevant policy terms.

Author

Anthony Chan

Anthony is the Content Marketing Director for Kwiksure and its parent company Pacific Prime. He is responsible for supervising and developing content marketing strategies, search engine optimization, data analysis, e-communications, and video production. With over 10 years of experience in marketing, Anthony is adept at analyzing insurance market trends to ensure the content is engaging and easy to digest.

His English articles can be found on Pacific Prime's blogs for their Hong Kong, Singapore, UK, Dubai, and Thailand branches. He also studied English writing during his exchange program at West Virginia University in the United States.

2025-04-16

[Yachting at sea] Hong Kong yacht mooring guide | Typhoon shelters, private mooring | Introduction to the six major local yacht clubs

Hong Kong boasts the deep and wide Victoria Harbour, as well as an extensive coastline and numerous outlying islands. Sailing out to sea offers a variety of unique views and a refreshing experience. If you plan to buy a boat in Hong Kong, the main concern is where to moor it. This time, Kwiksure shares information about mooring boats in Hong Kong waters, including major typhoon shelters and private yacht clubs. Although Hong Kong has vast waters and mooring yachts should not be a "land problem," in reality, as of 2023, there were already 12,553 Class IV pleasure vessels. Currently, all the yacht clubs in Hong Kong combined offer about 2,300 yacht berths, and there are about 2,000 private mooring facilities in 43 different water areas, totaling only about 4,300 berths across the city. The number of moorings is clearly insufficient, and Hong Kong yacht owners also face a shortage of berths.

2021-07-04

Emigrating to Canada: Buying car insurance and exchanging your foreign driving license

Canada has always been one of the hottest emigration destinations for Hongkongers. Among Canadian cities, Vancouver and Toronto are especially popular. The Canadian government has recently pushed out a scheme titled 'Hong Kong Pathways', which enables those who have completed a post-secondary degree in the past five years to apply for a 3-year long work visa. Having said that, it's a vast world out there compared to Hong Kong, and roads tend to be a lot more spread out. Living without a car is akin to being a bird without wings. If you're interested in emigrating, you should get to know how to exchange or obtain your driver's license. In this Kwiksure series, we will go through four popular emigration destinations among Hongkongers. This includes the UK , Canada, Australia, and Taiwan. Read on for answers to frequently asked questions like how to exchange your driver's license , how to get one , how to secure car insurance , and how to transfer your No Claims Discount/No Claims Bonus (NCD/NCB).

2021-09-13

4 tips to compare golf insurance in Hong Kong and their claims limit

It's easy to believe that you won't get hurt from a contactless sport like golf. However, like a host of other sports, if you have an incorrect posture, you might injure yourself or others around you. The Consumer Council has evaluated 12 local golf insurance plans and their coverages in 2019. Today at Kwiksure , we will compare golf insurance in Hong Kong, their coverage areas, and claim limitations.

2025-07-01

If your company already offers a health insurance plan, do you still need to buy VHIS?

Most office workers in Hong Kong enjoy their company-provided medical insurance. However, ever since the government started offering the Voluntary Health Insurance Scheme (VHIS), more and more people have become interested in buying a plan for themselves. You might question, if you already have group health insurance from work, is there a need to buy a VHIS plan ? Today at Kwiksure, our expert insurance advisors will break down the differences between group and individual health insurance.

2021-03-09

Your guide to COVID-19 vaccine insurance

As the COVID-19 Vaccination Program starts rolling, eligible citizens in Hong Kong may choose to be inoculated with Sinovac's CoronaVac or BioNTech's Pfizer. Moreover, the government will set up an indemnity fund to compensate people adversely affected by the vaccinations. Having said that, you might still be worried that this fund will not offer adequate financial support. This brings us to the question: Will insurance policies currently available in the market cover the potential risks of getting the COVID-19 vaccinations? Today at Kwiksure , our experts will reveal the answer.

2014-06-11

The 4 Most Common Golfing Accidents

Regarded as one of the more leisurely and relaxing games that people of all ages can play and enjoy, golf is the sporting choice for many men and women around the world seeking a non-contact sport. There are numerous health and fitness benefits to playing golf, such as spending several hours walking around a course and being to the elements, however good or bad they may be. But like all sports, golf does come with a risk. Accidents and injuries can affect even the most healthiest and fittest of golfers, regardless of age and ability. With this in mind, we look at the type of accidents that occur most frequently on the golf course.