By Rear Commodore David Jacobs

Update: Monday 5 July 2021

In last week’s Onshore Newsletter we brought to the attention of Members a new clause in Pantaenius’ latest PDS excluding coverage when certain weather events occur. We were of the opinion this exclusion was unnecessarily broad and caught situations that should not apply to yachts and were probably not intended.

We have been having productive discussions with Pantaenius and they have advised they will amend the clause so it reads as shown below:

§5. Severe Weather Exclusion

Definition: “Severe Weather Warning” is when the Australian Bureau of Meteorology or equivalent authority in the relevant jurisdiction or coast guard or World Meteorological Organization issues warning of sustained winds of gale force (63 km/h) or more, and wind gusts of 90 km/h or more.

This Insurance does not cover:

1. loss or damage caused by sustained winds of gale force (63 km/h) or more, and wind gusts of 90 km/h or more occurring during a voyage in circumstances where the Vessel has departed its mooring, berth or anchorage when a Severe Weather Warning has been issued for the area of the subject voyage or part thereof.
2. Loss or damage caused when the Vessel is unattended at anchor;
   1. 2.1.  when a Severe Weather Warning or Severe Thunderstorm Warning or similar has been issued by the Australian Government Bureau of Meteorology or equivalent authority in the relevant jurisdiction or coast guard or World Meteorological Organization for the anchorage area; and
   1. 2.2.  when the Vessel drags or breaks free from its anchor by reason of such storm or severe weather. 

We understand they will let each of their policyholders know.  If you don’t hear from them we suggest you follow up with them.

CYCA appreciates Pantaenius’ openness and preparedness to accommodate our concerns.

Original article: Monday 28 June 2021

The importance of reading your insurance policy documents and the accompanying Product Disclosure Statement is highlighted by a recent experience I had.

Our yacht is insured with Pantaenius and on renewing the insurance, they sent me their current PDS with a note that it had changed and I should read the full PDS. Regrettably, they didn’t identify what changes had been made.

I flicked through the PDS and found this new clause:

§5. Severe Weather Exclusion

This Insurance does not cover:

1. loss or damage caused by wind, waves, lightning or other weather event occurring during a voyage in circumstances where the Vessel has departed its mooring, berth or anchorage when a Severe Weather Warning or Severe Thunderstorm Warning or similar has been issued by the Australian Government Bureau of Meteorology or equivalent authority in the relevant jurisdiction or coast guard or World Meteorological Organization for the area of the subject voyage or part thereof. 
2. loss or damage caused when:
   1. 2.1.  the Vessel is unattended at anchor;
   1. 2.2.  a Severe Weather Warning or Severe Thunderstorm Warning or similar has been issued by the Australian Government Bureau of Meteorology or equivalent authority in the relevant jurisdiction or coast guard or World Meteorological Organization for the anchorage area; and
   1. 2.3.  the Vessel drags or breaks free from its anchor by reason of such storm or severe weather. 

If you don’t want to be uninsured, this means you need to be careful not to commence your voyage where there are such weather warnings in any area in which you will be sailing.

The Bureau of Meteorology (BOM) defines a severe weather warning as:

• Sustained winds of gale force (63 km/h) or more
• Wind gusts of 90 km/h or more (100 km/h or more in Tasmania)
• Very heavy rain that may lead to flash flooding
• Abnormally high tides (or storm tides) expected to exceed highest astronomical tide
• Unusually large surf waves expected to cause dangerous conditions on the coast
• Widespread blizzards in Alpine areas

Our CEO, Sailing Manager and I have been having discussions with Pantaenius concerning this clause. Following our discussions, Pantaenius said they will approach their underwriters to remove the reference to Severe Thunderstorms and to limit the definition of Severe Weather Warning to just wind conditions.

If approved by the underwriters, they will advise us and will email all policyholders to advise of this change.

We will keep you informed of developments.