When obtaining an insurance policy for a recreational watercraft, people are most frequently choosing to insure motorboats. According to data of BTA Baltic Insurance Company AAS (hereinafter – BTA), insurance of motorboats comprises 70% of the overall number of issued policies. The other 30% include such watercraft as cutters, paddle boats, sail yachts and motor yachts. Interesting that people also want to insure self-built floating structures – floating recreational complex. It has to be noted, that it can be done only, if such a floating structure is officially registered.

BTA has concluded a total of 349 insurance contracts on recreational watercraft the total value of written premiums constituting 141 thousand euros since 2015. The largest interest in insurance of watercraft could be observed in 2017, when 111 insurance contracts were concluded, reaching the total value of written insurance premiums 40.8 thousand euros. In this year, this indicator has shrunk by a half – 62 concluded contracts with the value of written premiums comprising 24.6 thousand euros.

Ivo Danče, the Director of BTA Baltic Insurance Risks Underwriting Department, explains, that in this year owners of water vehicles, when concluding an insurance contract, have chosen CASCO together with the Third-Party Liability Insurance (TPLI) - 43% of all cases (only CASCO - 43%, only TPLI - 9%), stating, that during the campaign in May BTA gave free TPLI of watercraft owner to the new clients who took out insurance for their watercraft, thus concluding in total 11 new contracts. In 2017, CASCO was chosen by 59% of clients, who concluded insurance contracts, CASCO with TPLI - 30%, whereas only TPLI - by 11% of clients. In addition, the clients who take out only TPLI policies, are usually people who are going to navigate abroad, where such insurance is required by the local legislation. For example, in Spain boating without TPLI insurance is forbidden.

“However, also a tendency can be observed, that there are such clients, who take out short-term insurance policies and insure their watercraft only on seasonal basis for autumn/summer period, although the protection offered by insurance is still valid also during the winter period, when watercraft are stored,” indicates Ivo Danče.

Summarizing the data on disbursed insurance indemnities, the total amount of disbursed indemnities in the period from the beginning of 2015 until this moment constitutes 31.7 thousand euros. If looking at a shorter period, from the beginning of the previous year until July 2018, in total 12 indemnity cases are submitted and the total amount of disbursed indemnities comprises 5.16 thousand euros. Most frequently insurance indemnities are disbursed in cases of collisions with any underwater obstacle or theft of engine of watercraft.

BTA basic insurance protection of recreational watercraft includes the following risks: water traffic accident risk, fire risk, explosion risk, natural disaster risk, accident hazard risk, hidden manufacturing defect risk, shaft breaking, boiler breaking risk, third-party unlawful action risk and other risks; however, for additional fee clients can choose also various additional risks to ensure more complete insurance protection, for example, competition risks, lease risk, operational vehicle or commercial activity risks.

About BTA

BTA Baltic Insurance Company is one of the leading insurance companies in the Baltics, offering the broadest range of non-life insurance services in Latvia, Lithuania and Estonia. BTA employs more than 1,000 employees in the Baltics. The largest shareholder of BTA is Vienna Insurance Group AG with 200 years of experience in the insurance industry. More than 50 companies in 25 countries constitute the group, which employs 25,000 employees. Vienna Insurance Group AG is a clear leader in its core markets in Europe maintaining high rating of financial stability – Standard & Poor’s A+ (stable outlook), with a listing on the Vienna and the Prague Stock Exchange.

Additional information:
Elīna Rasmane
Marketing and Public Relations Department Director
BTA Baltic Insurance Company AAS
e-mail: elina.rasmane@bta.lv