Re: Self Insurance


Teun BAAS
 

Below in blue next to Ken’s my current coverage; in red the last 2 years LLOYDS

 

Best Regards Teun

SV AMELIT  A54  #128

 

In Storage on the hard in COOMERA (near BRISBANE) QLD AUSTRALIA

May 19, 2020 13:07:00

 

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From: main@AmelYachtOwners.groups.io <main@AmelYachtOwners.groups.io> On Behalf Of Ken Powers SV Aquarius via groups.io
Sent: Tuesday, May 19, 2020 00:35
To: main@AmelYachtOwners.groups.io
Subject: Re: [AmelYachtOwners] Self Insurance

 

Though I think it would be a great idea to start the "Amel Group Insurance Company" AGIC, it's a lot more than just opening a bank account and filling it with our $6000 each month.  Insurance companies are Bankers first, and Offer insurance second.  Once you get the first $1.2M in the bank it has to be invested, and everyone will have different ideas of where to invest it.  Well hedged is probably best, but these days I have been a very unsuccessful investor!  

On the questionnaire - Ask about Auto, Motorcycle, Airplane Insurance - Any tickets past 10 years, and any claims?  People are the same on the water as they are on land or in the air.  Careful drivers on land and in the air, will be careful captains on the water.   

I also think that the owners that will be insured by AGIC should be required to have three owners confirm that the owner is worthy of getting insurance through AGIC.  The first 200 owners insured also need to be well vetted be part of the group.  All you need is a few bad actors to bankrupt an insurance company.  Everyone has different ideas of what the appropriate level of experience should be required to sail an Amel off shore.  What would be the level of instruction/experience required for new owners, and who would be capable of imparting that knowledge and signing off for a new owner to be insured.  Bill's class would be a good one, but should Bill alone be able to sign off for a new member?  No one person should.  

There's a lot of benefits we could gain by starting this venture.  For one, it would make the AMEL brand more valuable if the insurance was transferrable to a new owner given a mandatory level of experience, no claims (any insurance), and an AMEL offshore sailing course.  Just like a check ride by the FAA.  

To do this right we need a village, and I think the AMEL Owners are the right village.  If we start now, we could draft a document and get this started by the end of the year.

First get interest level.  200 boats would probably be a good start.
Draft a Document how the company would operate.
  1.  Investments
  2.  Personal requirements to be insured
  3.  What/Where will the insurance cover
  4.  How/who will manage the claims
  5.  Define a bad risk owner, and how will a bad risk owner be deleted from the insurance group.
  6.  Insurance claims - I have never had a claim on my Car Insurance, Motorcycle Insurance, Boat Insurance, or Airplane Insurance.  Yup, I HAVE NEVER MADE A CLAIM IN 40 years of driving several types of vehicles.
  7.  Tickets in the last 10 years - Yup, I received 1 speeding ticket between San Diego and Vegas.  Just moving with traffic.  Safer to move at the same speed as traffic even though I was Breaking the Law.



So the first think would be to find out who is interested in the insurance, and each should answer the following questions.  If there is interest we need to get everyone into a spreadsheet and when we get to 200 people we can move forward to the next step.
HERE IS MINE
1.  Current Insurance Company:  JACKLINE POLICY[TDB]    ERGO GERMANY via POEMA in SOUTH PACIFIC Thailand office but premium paid to NOUMEA NEW CALEDONIA.  LLOYDS syndicate
2.  Cost yearly: $5700[TDB]   USD7,108.75 BUT this includes USD1,233.75 Dutch Insurance Tax because my boat is registered in THE NETHERLANDS PLUS USD350 for increased 3rd party liability from USD3Million to USD6 Million (AUSTRALIAN $10,000,000) Between USD4,900 and USD5,200
3.  Coverage amount: $280K[TDB]  USD607,000 of which USD575,000 for the hull, machinery & equipment  USD595K - also USD575K for the hull
4.  Coverage location: Worldwide except weather zones[TDB]  AUSTRALIA – in case I go to NEW ZEALAND we will get amendment; cyclone clause – 20% deductible . NEW CALEDONIA and VANUATU between North -  5 S, South - 40 S; East – 180 East; West – 150 East. South East ASIA: North – 25N; South - 15 S; East – 130E; West – 75 E. Policy mentions specifically that cyclone etc. are covered with 5% deductible.
5.  3rd party Liability: $1M[TDB]  USD3M  plus see above USD3Million
6.  Solo Sailor: ?[TDB]  Yes NO
7.  Insurance claims - I have never had a claim on my Car Insurance, Motorcycle Insurance, Boat Insurance, or Airplane Insurance.  Yup, I HAVE NEVER MADE A CLAIM IN 40 years of driving several types of vehicles.[TDB]  Never any Marine claim
8.  Tickets in the last 10 years - Yup, I received 1 speeding ticket between San Diego and Vegas.  Just moving with traffic.  Safer to move at the same speed as traffic even though I was Breaking the Law.[TDB]  I think there was no such question or maybe for the last 3 or 5 years: NO tickets in the last 3 or 5 years.
9.  ??  Any other questions we need to ask to get the first 220 or more first responders?  Some people will not meet the standards of the majority, so we will need to get more than the number required for critical mass.  Even I may not meet the standards of some.  
 
Done rambling....

Ken Powers
Aquarius SM2K #262
Currently in Phuket Thailand

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