Touristic boats obliged to get insurance policy

Touristic boats obliged to get insurance policy

Touristic boats obliged to get insurance policy

Sightseeing tour boats and other touristic sea vessels have been entitled to be insured against accidental damages as of May 1, according to remarks of a sectoral professional.

The Insurance and Private Pensions Regulation and Supervision Agency (SEDDK) issued a notification in March to oblige owners of touristic and commercially-used boats, yachts and other sea vessels capable of carrying at least 12 passengers to take out a liability insurance policy, Türk P&I CEO Ufuk Teker said.

“Now, port authorities have started preventing sea vessels without necessary coverage from setting sail,” he said.

The mandatory liability insurance policies will be prepared against a personal injury, an accidental harm on third parties and an environmental damage caused by vessel, according to Teker’s remarks.

The new regulation will encompass around 3,000 boats and yachts that are very popular at resort towns in the Turkish Aegean and Mediterranean regions, such as Bodrum, Marmaris, Fethiye, Kaş, Kemer, Demre, Side and Alanya.

“There are also gulets [schooners] that set sail weekly to other ports and the Greek islands. And there are bigger yachts. They have all been put under the coverage of the mandatory liability insurance,” Teker said.

“Some of those vessels have very low insurance coverage limits and some of them are uninsured. Now, they all have to get insured and increase their coverage limits by May 1. In this way, tourists will enjoy their holidays with an insurance guarantee,” he added.

Coverage limits of sea vessel insurance policies are generally high compared to other insurance types. Insurance coverage of a sea vessel amounts to around $400,000 per passenger.

Annual premiums of sea vessel insurance policies range between $1,000 and $1,500.

The ticket price of a daily sightseeing tour in the Aegean resort town of Fethiye is around 300 Turkish Liras ($20), but the price could go up with added services, such as meals, drinks and live music.

The demand for Aegean and Mediterranean tours by yacht, known as the Blue Cruise, has increased significantly during the COVID-19 pandemic period.