Claims
Marine assistance, towing and salvage
| Category | Situation | How it is usually paid |
|---|---|---|
| Assistance | Flat battery, fouled prop, out of fuel, no danger | Towing or breakdown sub-limit, if the policy has one |
| Emergency tow | Disabled but not in immediate peril | Towing sub-limit, sometimes the sue-and-labour provision |
| Salvage | Real peril — grounding, taking water, lee shore | Salvage award under the hull section, based on values at risk |
| Wreck removal | Vessel lost and the authority requires removal | Liability section, often a separate limit |
Salvage contracts and awards
Salvage is not priced by hours worked. It reflects the value of the property saved, the degree of danger, the skill and risk involved, and the value of the salvor's own equipment put at risk. That is why a successful salvage of a well-found cruising yacht can produce a claim running to a substantial share of the vessel's value, and why it belongs to the insurer to negotiate rather than to the owner.
Insurer authorisation for towing
- Establish first whether anyone is in danger. If they are, it is a marine rescue call, not an insurance call.
- Contact the insurer's emergency assistance number — most marine policies have one that operates outside business hours.
- Ask the insurer to authorise the operator, or to nominate one. An authorised operator removes most of the later argument about cost.
- If you must arrange it yourself, record why, and keep the time and the conditions.
- Do not agree a price or sign an open-ended undertaking without telling the insurer, unless the delay would endanger the boat or the crew.
- Keep every invoice, the tow agreement, and any recording of the radio traffic.
Volunteer rescue and commercial recovery
Australia's volunteer marine rescue organisations exist to save life, and they will come for you when you are in danger. They are not a substitute for a commercial tow after a breakdown, they may ask for a contribution or a membership, and in some areas they will decline a routine non-emergency tow and refer you to a commercial operator. Budgeting a breakdown on the assumption that a volunteer unit will always tow you home for nothing is a poor plan.
Towing limits and exclusions
- Whether there is a towing or emergency-assistance benefit at all, and what dollar figure or percentage it is capped at.
- Whether the sue-and-labour provision — the cover for reasonable steps taken to prevent or minimise a loss — sits inside or on top of the sum insured.
- Whether the benefit applies anywhere within your navigation limits, or only within a stated distance of a port.
Read the wording before you need it
Almost every disputed marine claim turns on a definition, an exclusion or a condition the owner had never read. The PDS guide explains which sections decide claims.
Towing and assistance at a glance
- Assistance
- Usually a capped benefit, not the full sum insured
- Salvage
- Valued against the property saved, not hours worked
- First call
- Rescue services if life is at risk; then your insurer's emergency line
- Before signing
- Know whether the document creates a tow or a salvage
- Check in the PDS
- Towing sub-limit, sue and labour, navigation limits
Related guides
- Boat Insurance Claims Australia: Incidents and Disputes
- Salvage and Wreck Removal Insurance
- Grounding Boat Insurance Claims Australia
- Engine and Machinery Insurance Claims Australia
- Navigational Limits in Boat Insurance
- Product Disclosure Statement Guide for Boat Insurance