Morgan has an outboard motorboat insured under a boatowners package policy. Indi

Question

Morgan has an outboard motorboat insured under a boatowners package policy. Indicate whether each of the following losses would be covered under Morgan's policy. If the loss is not covered, or not completely covered, explain why.
a. Morgan's boat was badly damaged when it struck a log floating in the water.
b. An occupant in Morgan's boat was injured and incurred medical expenses when the boat struck a concrete abutment.
c. The motor was stolen when the boat was docked at a marina.
d. A small child in Morgan's boat was not wearing a life jacket. The child fell overboard and drowned. The child's parents have sued Morgan.

Explanation / Answer

A. Morgan's boat was badly damaged when it struck a log floating in the water. - in case of boat hitting a floating log, the policy owner will become eligible for salvage claim.

B. An occupant in Morgan's boat was injured and incurred medical expenses when the boat struck a concrete abutment - in this case, the policy owner will be eligible for claim, as the third-party liability clause covers the uninsured .

C. The motor was stolen when the boat was docked at a marina - Theft is covered under the policy , so the loss will be covered upto the depreciated value / book value of the boat.

D. A small child in Morgan's boat was not wearing a life jacket. The child fell overboard and drowned. The child's parents have sued Morgan - It's a case of negligence on part of the boat owner, as the accident was anticipated because of not using the safety gear for child. the loss is not covered by the policy

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