Insurers asked to adopt approved repairer scheme for claims

River Canal Rescue Managing Director, Stephanie Horton, is asking insurers to review their clams handling processes in order to get boaters back on the water within days of an incident.  During a presentation at the recent Crick Boat Show, Stephanie emphasised the speed at which claims can be resolved if the insurer runs an approved repairer scheme. 

When an incident occurs, insurers typically require claimants to register the claim and complete and return a notification form with a minimum of two repair/replacement quotes.  Upon approval, the claimant is left to progress and pay for the work, submit an invoice and wait for reimbursement.

River Canal Rescue estimates this process, on average, takes between two weeks and three months.

Insurers running an approved repairer scheme, however, have authorised River Canal Rescue’s subsidiary firm, Canal Contracting, to make repairs up to an agreed limit, so there’s no need to source and pay contractors up front.   The breakdown specialist says this process; from notification to repair, can take one or two days as often only a single call is needed to the insurer for the claim to be registered, authorised and progressed. 

Stephanie went on to outline common causes of claims, such as navigational errors, grounding, accidental damage and vandalism and explained how to reduce further losses.   She also put insurance jargon into plain English and advised on claimants’ responsibilities.

Stephanie comments: “Boaters, particularly recreational ones, who insure with firms without this scheme, tend to resent the amount of time it takes to get their craft repaired and one of their biggest frustrations is having to return home to complete a claim form and source quotes/failure reports in order to obtain repair authorisation.  This takes up time and can involve a fair amount of travel to locate suitable contractors – all before anything is agreed. 

“Insurers must adapt their processes and take into account the stress and trauma often faced by boaters when they make a claim and equally, claimants need to understand the requirements and limitations of their policy.”

Collidge & Partners join forces with RCR.

One of the UK’s best known Insurance underwriting agents, who’ve specialised in the marine sector for over 25 years, Collidge & Partners, have teamed up with River Canal Rescue to offer a unique breakdown service which is now on offer to their clients. The new membership is now available to both new and existing clients and means that their customers now have access to competitively priced breakdown cover for their boat.

The service, full details of which are available on Collidge and Partners website, was first discussed just under a year ago when Chris Collidge asked RCR’s MD Stephanie Horton to come up with a package to replace Collidge &; Partners existing breakdown recovery product. The brief was simple, Chris wanted something akin to the RAC’s coverage for the motorist. He also stipulated the service was to be 24/7 and it had to be competitively priced. The result is C&P’s new Inland Waterways Breakdown Cover. 

With cover now being offered and it’s popularity evident Chris Collidge commented that he “welcomes the arrangement with RCR and is more than happy to be associated with the company [RCR]” which he describes as “complimenting his own insurance business.”

As for RCR, Stephanie states “ It’s great to finally get Collidge & Partners on board, as one of the most successful inland waterways brokers we worked with them to put together a very unique membership package. This package includes the elements that C&P championed as being a top priority to their customers, and also provided them with the benefit of knowing that they have RCR cover and access to a dependable service 24/7” She added that RCR are also “the approved repairers for Navigators and General policies and as such also handle claims for Collidge and Partners; so their customers will now experience a seamless and first class service no matter what happens...we are here to help”.

For full details of the breakdown cover on offer from C&P visit www.collidgeandpartners.co.uk and click on the link to the ‘Inland Waterways Breakdown Cover’ where you will find full details and the opportunity to download the application form. Prices start from £65 which provides cover for a maximum of 3 callouts per year.

For full details of River Canal Rescue’s range of breakdown services, and their unique Canal Contracting company, visit www.rivercanalrescue.co.uk

So how does it work?

How many of us really understand what is covered by our insurance, and what the insurance company expects of us?

In the last issue we looked at Insurance terminology, in this issue we pose some hypothetical scenarios to illustrate the terms from the last article in use and show how they can be applied in a practical manner. 

If your vessel sinks, most policy wording will indicate that the liability for damage to the vessel including raising of the vessel is down to the insured .  Why? 

After a hard winter, or heavy rain fall you pop down to check on the boat and found that it is underwater.  You call your insurance company who log the claim and explain that although the vessel has sunk this is not necessarily covered by your insurance. 

 The reason it has sunk has to be identified before the claim can be assessed this is ‘identifying the peril’. Therefore the insurance company will expect you the insured to cover all recovery costs up until the cause of the sinking is identified. If this is due to poor winterisation, or a failed bilge pump the claim may be rejected; unless there is clear evidence that the casue was not preventable. If you did not regularly check your vessel when the river was in flood this could be classed as a failure of ‘duty of care’ and your claim rejected. If due to vandalism it may be covered but until the vessel is raised and the cause identified no insurance company will accept the claim. However once your claim is accepted then all costs incurred will normally be covered.

You are in a lock and you lose concentration, the boat drifts and as the water is emptying, you feel the boat start to tilt, and realise too late that the boat is caught on the sill. You quickly rush to rectify the situation but find that the steering has gone stiff and you can no longer move the rudder. Is this covered by your insurance?

 If you are in a car and you reverse in to a bollard, and had full comprehensive cover then this would be classed as ‘accidental damage’ and would normally be covered by your insurance cover. Apply this to boats and if you hit an underwater obstacle, catch your rudder on a sill, lose your propeller, etc, these could all be classed as accidental damage, and therefore may be covered under your insurance policy.

You visit your boat and find that someone has smashed you windows and doors leaving the boat open and unlocked. You take a wrong turn on a river with a strong current and suddenly find yourself stranded on a weir. Under these scenarios the insurance company would expect you to take measures to secure the vessel to insure that further damage is mitigated. This is your Duty of Care. 

In the first instance you would need to organise someone to board up the windows and put a lock on the doors, in the second you would need to organise for the boat to be rescued. If you did not undertake these measures and the boat suffered more damage your claims could be rejected or the full damage not covered. Costs of’ mitigating the damage’ is normally covered by your insurance company, once the claim is accepted.

So what does it all Mean?

Boat insurance is a something we all take for granted, we must have it and it provides that peace of mind of knowing that when something goes wrong you’re covered.

However how many of us truly understand the terminology that is used to quantify the cover that is provided? The following guide looks at some of the terminology that is used and how it can affect you if you do not fully understand the implications.

The following explanations have been put together using  a number of insurance  policies to provide a generalised description of the terminology, please refer to your own policy or insurance company for exact meanings.

Seaworthy –fit to encounter the ordinary perils of the sea, rivers, lakes, and  any other navigable waterways and suitably moored, crewed, equipped, fuelled, provisioned and with all equipment in proper working s order.  Seaworthyness applies not only to the hull but to all of your boat including parts, gear, equipment and machinery. 

In layman’s terms :- The hull, machinery and all equipment must be ‘fit for purpose’. In addition this also stipulates you have the correct knowledge and crew, and are fuelled and provisioned for your journey. 

Peril – The cause of the loss, damage or accident. Typically Fire, Lightening, Explosion, Theft, Malicious damage or Vandalism, weather event, Freezing of Machinery (as long as it has been winterised correctly) and Accidents.

This is at the heart of every claim – “was the damage caused by an insured peril?”  and will dictate if the claim is covered by your insurance policy.

Duty of Care (due diligence) – you take all reasonable steps to maintain and keep your vessel and its gear and equipment in a proper state of repair and seaworthiness and take all reasonable steps to protect your insured property from loss or damage. 

Weather event- an unusual strong force of wind, heavy prolonged rain fall, snow or sleet, freezing conditions resulting in ice, flooding of lakes and rivers beyond bounds. ( this can only be classed as loss when  as a direct result of a sudden and sever event) This would be classed as one of the Perils resulting in a claim.  

Accidental Damage –  Loss or damage to the vessel and associated equipment as agreed up to the total value insured due to external accidental means, fire, explosion, negligence, malicious acts and other causes specified in the policy. 

This covers most common issues ,( not caused by third parties) encountered whilst boating; loss or damage to the rudder, propeller, shaft, machinery or keel from hitting something underwater, grounding, sinking and water damage are all typical claims covered under accidental damage.

Fault – A failure in or of the design, manufacture or installation of a component or part of you vessel.

Modification  - made to the vessels super structure,  extended, major changes to the layout, additional structures built, and new engines fitted all of these have to be notified to an insurer, this may or many not result in a survey being required to access seaworthiness but in many cases much like vehicles if you make any changes then it is always prudent to let your insurer know.

Mitigate damage/loss – In the event of an incident that may give rise to a claim, you must take all necessary steps to minimise and prevent further loss.  Following partial or full immersion of your vessels machinery you must administer first aid. 

When loss or damage occurs act you must act as if uninsured. This may seem unusual advice but it is most important that, in the event of any incident involving your vessel you must take all reasonable steps to minimize the loss.  All reasonable charges, including salvage charges, incurred to prevent or minimise a loss by any risk is usually recoverable. You must notify your insurance company as quickly as possible.

Salvage - The act of saving imperilled property from loss.

 In the event of you requiring assistance from salvors it is imperative that you do not put life at risk by any delay in accepting salvage services. A potential salvor may be prepared to assist on a fixed price basis and only agree a price which you would be reasonably prepared to meet yourself in the event of having no benefit of insurance cover

Expense of Inspection (bottom inspection) the expense of inspecting the Vessel after grounding (even if no damage is found); 

Typical Limitations – please check your policy wording

• Loss or damage whilst left unattended on moorings unless otherwise agreed.
• any loss, damage, liability or expense directly or indirectly arising from: lack of reasonable maintenance; or wear and tear
• any liability to any person if they or anyone else has paid for them to be on-board the Vessel
• unrepaired damage, any failed repair, alteration, modification or  maintenance work carried out on the Vessel 
• Loss or damage to machinery  caused by fire or electrical failure of an item of machinery

More dramatic rescues for RCR.

River Canal Rescue have been involved in yet more dramatic rescues recently. To start with the owner of a 43ft boat called for help after getting caught by the current whilst turning. As a result he ended up wedged sideways on to a bridge on the Avon at Eckington Br. West Midlands Fire and Rescue rescued the crew but by the time they got the crew off the boat the water was lapping at the gunwale.

RCR scrambled the rescue team who arrived on site approx 3.30 together with a contractor who had a Land Rover which was attached to the boat. However, unfortunately every time they tried to pull the boat against the current it started to drag the Land Rover back. So back up was called in from York which arrived at 6pm together with other team members.

The boat stern was grounded on the far bank, with it’s bow wedged against the bridge by the force of the river water (which was in flood) resulting in the boat being at a 30 degree angle. The decision was taken to attempt the rescue in two stages so, with a safely line to the bridge and two engineers on-board, the first stage began. This was to pull the boat by the stern towards the opposite bank using a line which was rigged to the Land Rover. After a number of attempts the boat was beached bow first on to the opposite shore with it’s stern wedged against the bridge.

The second stage was to reposition the Land Rover and with a shorter rope swing the stern away for the centre of the river towards the shore and use the engine power to reverse the boat to the small jetty. During a number of attempts the rope snapped, not helped by operating in the dark, the engineers knew that time was now of the essence as the boat was in serious danger of capsizing. Due to the angle it had been sitting at for several hours the outlets had been under water and as a result water had been pouring in and filing up the boat. Finally using the engine power and the Land Rover the boat was finally dragged around and secured to the jetty.

Onboard the bilges were working overtime and loosing the battle to keep the boat afloat, more bridge pumps were installed but the water was still rising. A quick decision was taken and in order to right the listing boat all personnel had to get onboard on the opposite side and use there combined weight to even the boat and lift the submerged outlets clear of the river. A small winch was rigged up to the shore to try and keep the boat level, and after two hours of pumping the boat was finally level, free of water and safe.

At 4.30 the following day RCR received another call from a 57ft boat unbelievably in the exact same location but wedged horizontally against the bridge. The only access via boat or a ladder from the bridge. RCR alerted the rescue services to remove the boaters from the vessel for their own safety. When the engineers arrived on site at approximately 6pm they set to work assessing the situation and preparing for the rescue. The boaters were looked after by the St Johns ambulance team who had been contacted by the fire brigade after RCR explined that the rescue could take several hours. The rescue team having undertaken a rescue the previous day were quickly at work and by following the same procedure - pulling the boat backwards and using the engine power to reverse the boat they got it onto the jetty. The boaters from the previous rescue were still moored up on the jetty waiting for the river waters to recede, and this has to be moved up to make space for the second boat!

It’s worth noting that RCR charges for rescues but over the last year they have rescued 12 boats from critical situations which would have resulted in capsizing or loss of the whole boat. Stephanie Horton MD said “It’s also worth noting that from an insurance point of view a boater must undertake as many measures as possible to mitigate loss or potential loss, and that generally charges for recovery, lifting and rescue of a boat from these dangerous situations are covered by your insurance policies, however taking unnecessary risks can invalidate your insurance claim, so always assess if venturing out on to a river in flood is a sensible action; if your jorney can be avoided then don’t risk it”.

A minimum of three engineers would be dispatched for all rescue activities and RCR’s thanks go to engineers, Trevor Forman for both, Kerry Horton for both, Pete Baker for both, Pete Barnett for 1st, Aaron Forman for both, Mike Adams (contractor) for 1st.

Bio Diesel, the real worries – in plain terms.

In the past few years as the new directive regarding the use of red diesel has been in place, the forums and discussion have brought to light many new worries about the fuel we consume and the way we store and use it. One of the biggest issue appears to be the higher potential for water contamination and therefore the development of diesel bug.

Many of you will have suffered from water contamination or diesel bug in its mild or sever form, or at least know of someone that has, it may be that the general perception is that these cases have increased in the past few years, and it is easy to jump to conclusions and conclude that our fuel is becoming more susceptible to these problems.

RCR has been aware and treated water contamination and diesel bug for many years, and worked with Marine 16 to develop a product which would eradicate these problems at source.  We are a great advocate of the products as we know they work providing quick and effective treatment of water contamination and diesel bug blockages.

Marine 16 Diesel Bug Treatment is for sever cases of Diesel Bug, and will clear systems where fuel has turned to jellified slime, clogging the arteries of the engine, all ‘bugs’ are eradicated and dissolved. This product was independently tested by PBO a few years ago and was proven to be one of the best on the market. 

Marine 16 Fuel Maintenance Treatment  is the product that RCR uses and recommends for repeated dosing to ensure trouble free fuel issues. It treats  Diesel bug, water contamination and also cleans and improves engine efficiency and operation.

Facts

Although a mute fact now, the original discussions regarding the use of white/ red diesel raised a number of issues, the main being that white diesel is more refined and therefore less likely to suffer from the effects of water in fuel, diesel bug, and also runs cleaner therefore reducing coke build up and fouling of heater plugs etc.  Therefore there was an argument that even though paying more for the fuel the quality would be better and therefore the benefits could out way the costs.

However the final decision was taken and boater have been paying a higher premium to receive lower grade fuel to date. However this is all set to change with the new fuel directive, which due to the over riding requirement to have less than 10mg of sulphur per kilogram we will now see the introduction of road diesel to the inland waterways, which should have been a welcome transition.

 Unfortunately as Bio diesel is now being introduced in to road fuel the introduction on the inland waterways because of the storage and use has lead to a number of concerns.  These concerns have been addressed in the new Fuel directive, whish states that, following a survey only 25% of all suppliers will be using bio Diesel mixes, and therefore the perceived risk is minimal. 

The issue regarding how easily it will be to ensure that the diesel supplied is from a non Bio mix will remain and coupled with the 2p to 4p litre price premium could easily be over ridden by price conscious business and individuals. 

N&G Insurers have recommended that cover for failures caused by Bio diesel deteriorating rubber components may be difficult to prove and uphold as not due to wear and tear and therefore ultimately the following advice issued by the directive should be followed to ensure minimal damage.

If a FAME(bio diesel)-free supply cannot be secured then the following precautions are advised: 

Storage on land and onboard

Because of the changes in fuel quality, you will need to exercise increased care in the storage of sulphur free gas oil where this contains biodiesel. The following has been recommended by the UK petroleum industry: 

• Remove all water from tanks and conduct monthly checks to ensure, as far as practical, that they remain free of water. 
• Tanks that don’t already have drain points for removing water are likely to need modification. 
• Examine sight gauges on older fuel storage tanks for signs of leakage and replace any leaking seals. 
• If you are having tanks serviced before you receive the new fuel it would be advisable to replace fuel seals as a one-off precautionary exercise. 
• Replace fuel filters after 2 to 3 deliveries/turnover of the new fuel. 
• Ensure the content of tanks is turned over every 6 months or in any event no less often than every 12 months. 

Equipment 

The majority of equipment and engines supplied in the last 10 years should not have any problems with the fuel but a few precautions are recommended particularly for installations of older engines and equipment. 

• Examine fuel systems following the switch to the new fuel and ensure that any seals or pipes found to be leaking are replaced. 
• If you are having older engines and equipment serviced, replace fuel seals and fuel hoses as a precaution. 
• Replace fuel filters after the first 2 to 3 tank fulls of the new fuel. 
• The current specification for fuel hose to meet the requirements of the Recreational Craft Directive and certified against standard EN ISO 7840 for fire resistant hoses and EN ISO 8469 for non-fire resistant hoses. There is currently concern that these hose specifications have not been approved for use with bio-fuel and this should be checked with the hose supplier. 
• Bio fuel is a very good solvent and may release accumulated sediments in fuel tanks. Although it may not be necessary to clean fuel tanks and fuel lines before using bio-fuel in the lower levels of 7% it would be good practice to monitor filter plugging and keep extra filters to hand. 
• Some metals as well as rubbers and plastics are not recommended for use with bio-fuel particularly at high concentrations. Although not normally a problem at low level concentrations it is know that bio-fuel will ‘pick up’ metal such as copper. 

It is clear that some of this advice is impractical and will be costly and time consuming to the average boater and therefore is unlikely to be implemented by most, so it is likely that at some point we will all experience some of the issues highlighted. 

However Marine 16 have now launched there new improved version of their Fuel Treatment  product; Diesel Fuel Complete Treatment. This new product has been tested extensively and conclusively shows:- 

• Improved cold starting.
• Reduced white smoke on start-up.
• Reduced engine noise.
• Lowered regulated emissions, such as particulates, hydrocarbons and carbon monoxide.
• improves engine lubrications, 
• cleans and, removes carbon deposits, 
• treats and prevents water contamination and diesel bug

Diesel Fuel Complete Treatment  not only treat more fuel 500ml per 500ltrs of fuel , providing you with the same benefits as its predecessor but will also includes additives to deal with some of the issues Bio diesel introduces.  Using the treatment on a regular basis will ensure that water contamination, build up of Diesel bug and deterioration of rubber seals is minimised and therefore offers boaters a practical solution to the new threat of Bio Diesel.

Innovation and Customer Service at the heart of RCR’s New Membership Cover.

Innovation and Customer Service at the heart of RCR’s New Membership Cover.

River Canal Rescue are proud to announce an innovative and new service as part of RCR membership. This new cover offers our members an amazing service, taking ‘peace of mind’ a step further and ensuring that no matter what happens we can assist you. Not only that but we can also remove the burden of unplanned costs.

The new, RCR Replacement Parts Cover is designed to complement the benefits members already receive under the RCR Breakdown membership. This is not, however, available as a standalone product. The new service will be included in all membership levels other than the retainer level.

Parts Replacement Cover – 

Now after you’ve broken down we can pick up the repair bill.

RCR Replacements Parts cover gives you additional peace of mind, knowing we could help protect you from surprise repair bills should your vessel breakdown. (Full details will be available in the T&C’s membership booklet.)

What the new RCR membership will cover: 

• Following a breakdown, attended under your RCR Membership, the cost of parts, labour and VAT are covered if your vessel needs repairs due to mechanical or electrical breakdown. Cover limits and exclusions apply.*
• Cover includes a huge range of parts, for example :-

1. Starter Motor
2. Alternator replacements
3. Water Pump
4. Fuel Pump, Fuel Pipes & Fuel Hoses
5. Gearbox & Drive Plate
6. Propeller Shaft & Couplings
7. Hydraulic Pipes
8. Engine Mounts
9. Mechanical Steering and Hydraulic Controls
10. Injection Pump

Specifically EXCLUDED Parts

• Oil Cooler
• Propeller(s)
• Stern Gland/Tube
• Engine
• Consumables such as cables, filters, rubber components and the like that require routine wear and tear replacement

• Pays up to a maximum of £1,000 per repair^**
• You can make up to 4 claims per year 
• no restrictions on age of the engine

*Excludes normal wear and tear. 

**£50 excess per claim.

IWA Launches New Tailored Boat Insurance Scheme With Built in Breakdown Membership

The Inland Waterways Association (IWA) has teamed up with both Navigators & General and River Canal Rescue to enable an insurance facility that it believes is unique to the market, with the added benefit that every policy taken out and subsequently renewed helps IWA, and so helps our charitable work for the waterways.

Our tailored inland waterway insurance policies cover loss and damage to your vessel, protect against legal claims, pay out for injury and damage caused to other property and provide the additional security of inclusive breakdown membership.

Key policy features

The policy incorporates many features that are unique including:

• Membership to River Canal Rescue breakdown (which can be upgraded at additional cost)   

• Dedicated insurance cover for owners who permanently live aboard their boats (Additional cost) - Personal public liability

• Marina benefits

• Medical expenses cover

• £3 million pounds third party cover

Speaking on behalf of IWA, Neil Edwards, chief executive, said:

“IWA currently arranges insurance for over 170 of IWA’s corporate members, including most waterways societies and trusts, many boat clubs, community boat groups, navigation authorities, educational, industrial archaeological, waterways leisure and heritage bodies, museums and a wide range of other non-profit making organisations.  This is something that IWA has done as a non-profit making service for over 35 years, and has helped save many thousands of pounds from waterways insurance bills.  IWA’s experience in insurance matters led us to believe that something advantageous could be put in place for private boat owners too.  We believe that our partnership with Navigators & General, a leading pleasure craft insurer, and with River Canal Rescue, the foremost boat breakdown organisation, makes this scheme a market-leading proposition, and one which provides additional financial benefit to IWA that will allow it to further its charitable work for the waterways.”

For more information please go to: http://www.waterways.org.uk/support_us/boat_insurance