Original article: Insurance Day: Tuesday 29th July 2008 (www.idnewscentre.com)
Yacht owners are making more suspected fraudulent claims as economic woes continue to bite. The insurance industry is reporting a sharp rise in the number of alleged thefts and missing boats, in a sign that sailors are feeling the pinch. Charles Taylor Adjusting, the world's largest yacht loss adjusters, said the jump in theft and other claims from yacht owners had become clear as the global economic downturn gathers pace.
Nick Smith, a director of the firm, said there had been "a spate of thefts with many more yachts and equipment disappearing than you would normally expect. The number we're seeing has risen by more than 100 per cent since last year. While many of these insurance claims are genuine, the first question we now start asking is 'Is the owner current on his mortgage payments?'"
Smith said many of the boats - which tend to be vessels under 24 metres long - were secured against mortgages, particularly in the US, suggesting that economic difficulties are fuelling the increased claims. He added that there appeared to be a trend towards cash-strapped owners seeking to recoup their investments by claiming from their insurers. The crash in second-hand luxury yacht values was also contributing to the problem, he said.
