Yacht Insurance in UAE

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What is Yacht Insurance?

Yacht insurance is a specialised type of marine insurance to protect yacht owners from the financial risks associated with owning and operating a yacht.

This insurance covers a wide range of potential losses, including physical damage to the yacht from accidents, fire, theft, vandalism, and natural disasters. 

Furthermore, yacht insurance policies can be customised with different clauses such as the Agreed Value or Current Market Value of the yacht, which impacts the compensation in the event of a total loss​​​​. 

It’s worth noting that registration of all Marine Vessel is compulsory in the UAE,hence it becomes important to insure Marine assets.

Features and Benefits of Yacht Insurance

Listed below are the key features of yacht insurance-

  • Comprehensive Coverage: Yacht insurance offers extensive financial protection against various perils like fire, theft, vandalism, and natural disasters,own accidental damage and liability towards Third party.
  • Liability Protection: It includes liability coverage for accidents that could harm other vessels, property, or individuals.
  • Agreed Value Coverage: Policies can be arranged on an Agreed Value basis so that in the event of a total loss, the settlement is straightforward and reflects the yacht's value as agreed upon at the policy inception​​.
  • Emergency Assistance: Often includes provisions for emergency assistance, such as towing to the nearest port in case of an emergency 
  • Flexible Terms: Policies can be customised with various clauses and endorsements to suit specific requirements and exposures.

Inclusions of Yacht Insurance

Let’s take a look at some of the general coverages of yacht insurance-

  • Hull and Machinery Damage: Covers physical damage to the yacht’s hull, machinery, and on-board equipment​​
  • Third-Party Liability: Includes liability for damages or injuries caused to others due to the ownership or operation of the yacht​​
  • Theft and Vandalism: Financial protection against the theft of the yacht or its parts as well as damages due to vandalism​​
  • Natural Disasters: Coverage extends to damages caused by natural events like storms, earthquakes, and lightning​​
  • Salvage Charges: Reimburses the costs associated with the recovery and salvage of the yacht after an incident​​
  • Personal Effects: Includes coverage for loss or damage to personal belongings stored on the yacht​​
  • Emergency Assistance: Coverage for emergency services such as towing and necessary on-site repairs​​
  • Uninsured Boater Coverage: Financially protects against damages caused by uninsured or underinsured vessels​​

Exclusions of Yacht Insurance

Damages or losses under the following conditions are not covered by yacht insurance-

  • Intentional Damage: Any damage intentionally caused by the policyholder
  • Wear and Tear: Normal wear and tear, gradual deterioration, or damage from marine life
  • Unseaworthy Conditions: Losses due to the yacht being knowingly used in an unseaworthy state
  • Racing Risks: Damages or losses incurred while the yacht is engaged in racing or speed tests
  • Nuclear Risks and War: Damage from nuclear risks, war, civil unrest, or related activities
  • Illegal Activities: Any losses arising from illegal or criminal activities undertaken by the insured
  • Operation Under the Influence: Incidents occurring while the operator is under the influence of drugs or alcohol
  • Outside Navigational Limits: Any claim when the yacht operates outside the geographical limits specified in the policy without prior endorsement

Riders for Yacht Insurance

You can add the following coverage features to your existing yacht insurance policy to enhance coverage and have an additional level of security-

  • Personal Effects Coverage: Increases the limit of insurance for personal belongings on the yacht
  • Road Trailer Coverage: Extends protection to include any road trailers used for transporting the yacht
  • Racing Risks Extension: Provides coverage for damages and liabilities while the yacht participates in racing events
  • Increased Area of Operation: Allows for navigation beyond standard geographical limits specified in the policy upon agreement
  • Crew Coverage: Extends liability coverage to include any potential injuries or accidents affecting the crew
  • Charter Usage Extension: Covers the risks associated with chartering the yacht to third parties
  • Uninsured Boater Extension: Enhances coverage against damage caused by uninsured or inadequately insured boaters


Eligibility Criteria for Yacht Insurance

The table below highlights the eligibility criteria for yacht insurance-


Eligibility Criteria

Type of Vessel

Must be a yacht or pleasure craft primarily used for leisure activities


The yacht must be built by professional manufacturers and designed for safe operation in designated waters


Intended for private use, not for commercial purposes unless specifically agreed upon by the insurer

Navigational Limits

Operate within coastal waters of designated areas, such as the UAE, Arabian Gulf, and Gulf of Oman.

Condition of Vessel

The yacht should be in good operational condition and meet safety standards

Insurance History

Applicants should have a clear insurance record with no prior significant claims that suggest high risk

Owner's Experience

Yacht owners should have adequate boating experience or qualifications to safely operate the vessel 

Requirements for Yacht Insurance

When applying for yacht insurance, it's essential to provide a few details-

  1. Client Information
    • Entity Name
    • Registration Number
    • Telephone Number
    • Email Address
    • Physical Address
    • Person in Charge
  2. Vessel Information
    • Vessel Name
    • International Maritime Organisation (IMO) Number
    • Type of Vessel
    • Year Built
    • Shipyard where the vessel was built
    • Gross Tonnage (GT)
    • Deadweight Tonnage (DWT)
    • Flag State
    • Home Port
    • Classification Society
    • Date of Last Survey
    • Crew Details
    • Main Engine Details
    • Auxiliary Engines
    • Trading Area
    • Renovation Information (details of any repairs or renovations done on the vessel)
  3. Vessel Statistics
    • Any casualties in the last 5 years for the vessel
  4. The Assured’s Statistics
    • Details of other vessels owned and any casualties in the last 5 years for the entire fleet
  5. Ownership Information
    • Vessel Owner
    • Charterer (if applicable)
    • Operator or Manager
    • Premium Payee

Premiums for Yacht Insurance

Yacht insurance premiums, just like the premiums of other types of insurance, can vary based on several factors that influence the level of risk assessed by the insurer. 

Here are the key factors affecting the premiums-

  • Value of the Yacht: The more valuable the yacht, the higher the premium, as the potential cost for repairs or replacement is greater.
  • Age and Condition of the Yacht: Older yachts might attract higher premiums due to increased susceptibility to damage and higher maintenance costs.
  • Type and Size of the Yacht: Larger yachts as well as those with higher top speeds generally incur higher premiums due to increased risks and operational complexities.
  • Navigational Area: Yachts that navigate in extensive or high-risk areas like international waters may face higher premiums due to increased exposure to hazards.
  • Usage of the Yacht: Yachts used for commercial purposes or chartered to others often have higher premiums due to the increased risk of liability and more frequent usage.
  • Claim History: A history of claims can lead to higher premiums due to a perceived higher risk of future claims.
  • Safety Measures and Qualifications: Installation of safety equipment and the owner's boating qualifications can reduce premiums as these factors lower the risk of accidents.

Excess and Deductible on Yacht Insurance

The excess or deductible amount is a pre-agreed sum that the insured must pay. 

For instance, let’s assume that the deductible on a yacht insurance policy is AED 5,000 and there is a covered loss amounting to AED 50,000. In this case, the policyholder will pay AED 5,000- the insurance company will cover the remaining AED 45,000.


The deductible applies to each claim individually, unless specified otherwise in the policy terms. Simply put, for each separate incident resulting in a claim, the deductible must be paid by the insured.

Another important point is that a higher deductible can lower the premium costs of the insurance policy as it reduces the potential payout for the insurer.


Claim Process for Yacht Insurance

The yacht insurance claim process typically involves these key steps-

  1. Notification of Claim
    • Immediate Notification: As soon as an incident occurs, the policyholder must notify the insurance company through Policy Bazaar. This is crucial for the timely initiation of the claim process.
    • Details to Provide: The notification should include details of the incident such as the date, time, and circumstances of the damage or loss.
  2. Documentation
    • Accident Report: Prepare a detailed report of the incident. This should include photographs and a written description of the damage.
    • Collect Evidence: Gather relevant evidence (if any) to support your claim, such as witness statements or video footage.
  3. Assessment
    • Inspection by Surveyor: The insurance company will send a surveyor to inspect the yacht and assess the extent of the damage.
    • Review of Findings: The company will review the surveyor’s report to determine the claim’s validity and value.
  4. Submission of Supporting Documents
    • Repair Estimates: Submit repair estimates from qualified professionals to demonstrate the costs of repairing the yacht.
    • Other Documentation: Provide any additional documents requested by the insurer, such as purchase receipts or previous maintenance records.
  5. Claim Adjustment
    • Discussion of Settlement: The insurance company may negotiate the settlement amount based on the policy terms and the extent of the damage.
    • Deductible Application: Remember that the deductible amount will be subtracted from the total settlement offered by the insurer.
  6. Resolution and Payout
    • Approval of Claim: Once the claim is approved, the insurer will issue the payment minus any applicable deductible.
    • Final Settlement: The funds are typically sent directly to the policyholder or directly to the repair service provider, depending on the decided terms.

How to Apply for Yacht Insurance?

When you use a platform like Policybazaar.ae, applying for yacht insurance becomes easy! This online marketplace simplifies the process of comparing and purchasing insurance policies by showcasing options from the top insurance providers in one convenient location. 

To apply for yacht insurance online through Policybazaar UAE, follow these steps-

  1. Visit the official website of Policybazaar UAE.
  2. Browse the business insurance section and click on the ‘Yacht Insurance’ option. 
  3. Fill out your details in the lead form. 
  4. After you submit the form, one of the representatives from Policybazaar.ae will guide you through the remaining process.