Farm Insurance :: News

Share this news item!

Sea Journey Triumph: Boat Owner Defeats Insurance Denial

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

In a display of seafaring solidarity, a craft owner succeeded in overturning his insurance company's rejection of his claim following a challenging marine episode.

The insurer, RAC Insurance, originally contended the claim on an assertion that pre-existing structural and mechanical deficiencies were to blame for the perilous event that led to the boat requiring rescue.

However, an authoritative decision countered this conclusion, highlighting a drastic weather encounter as the primary antagonist in the vessel's struggle at sea.

The boat in question, hailing from 1971 and a former asset of the Darwin Port Authority, had changed hands with a certain shipwright, identified only as EP, who assured the new owner of the vessel's readiness for the deep blue. With an optimistic heart and eager eyes set on refurbishing the watercraft in Perth, the owner heeded the words of EP and a marine mechanic's favorable report, entrusting a capable crew and captain with the navigation from Albany.

Commencing their travel under the grace of hospitable skies at approximately 1AM on December 12th, 2022, the crew were not long underway before the weather's mood turned sour, unleashing winds that escalated with mercurial rapidity. As the elements waged their assault on the vessel, her engine yielded, and amidst the chaos, a migrating stove inflicted further harm upon the cabin's welfare. The beleaguered boat found salvation only through towed rescue yet continued to battle water onboard relentlessly.

An assessor appointed by RAC Insurance, known in records as AK, placed scrutiny upon the watercraft’s generator, noting pronounced rust as evidence of a historical absence of the alternator belt, and pinpointed this fault as the catalyst for the electrical system depleting the engine's vitality. AK further observed the boat's explicit vulnerable points that betrayed its integrity to the water's invasion and critiqued the choice of electric over mechanical bilge pumps.

Per these observations, RAC Insurance stood firm in their choice to decline the claim, invoking policy stipulations disallowing compensation for mechanical failures and deterioration through usage. Nevertheless, the stance adopted by the insurance experts found itself overturned when the Australian Financial Complaints Authority interjected with an assessment fortified by EP's logically structured report confirming the vessel’s suitability for seafaring.

Strengthening this alternate perspective was the captain's assurance of the engine's sound condition, corroborated by a marine mechanic who surveyed the ship prior to its departure. With meteorological reports attesting to gales exceeding 60kmh giving rise to formidable waves ranging between 5.5 meters and 7.5 meters in height, a "significant weather event" became evident. Furthermore, the Complaints Authority rebuked AK's suggestion that the introduction of electric bilge pumps was a foreshadowing maneuver for expected water ingress, citing a dearth of evidence to underpin such a claim.

In a ruling that resonated like a beacon of maritime justice, the boat emerged victorious and seaworthy at the onset of its trial by water, with an "insured event" dubbed the true culprit of the ensuing hazards. Consequently, RAC Insurance found itself obliged to embrace the claim, navigating the rightful course per their policy’s terms and conditions.

Published:Friday, 9th Feb 2024
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

IAG and Ag Guard Forge Partnership to Elevate Crop Insurance for Australian Farmers

14 Nov 2025: Paige Estritori

In a significant development for Australia's agricultural sector, Insurance Australia Group (IAG) has announced a strategic partnership with Ag Guard, a specialist rural underwriting agency. This collaboration will see Ag Guard managing the underwriting for IAG-owned CGU and WFI's crop insurance portfolios starting June next year. - read more

WFI Insurance and AgCarE Collaborate to Incentivize Sustainable Farming Practices

14 Nov 2025: Paige Estritori

In a move to promote sustainable agriculture, WFI Insurance has partnered with AgCarE, a certification program developed by AgForce, to offer premium reductions to farmers who achieve AgCarE certification. This collaboration aims to enhance financial, environmental, and social outcomes for Australian farmers and rural communities. - read more

Diversification in Small Farms Creates New Avenues for Insurance Brokers

14 Nov 2025: Paige Estritori

The landscape of Australian agriculture is undergoing a significant transformation as small commercial farms increasingly diversify their operations to enhance income and sustainability. This shift presents both challenges and opportunities for insurance brokers, as new ventures introduce complex risk management needs. - read more

Urgent Call for Enhanced Farm Safety Amid Rising Fatalities

29 Oct 2025: Paige Estritori

In 2024, Australian agriculture faced a significant safety crisis, recording 72 farm-related fatalities-the highest in over two decades. This alarming statistic underscores the urgent need for enhanced safety protocols and awareness within the farming community. - read more

Soaring Insurance Costs Challenge Australian Farmers

29 Oct 2025: Paige Estritori

Australian farmers are confronting a significant surge in insurance premiums, a trend largely attributed to the increasing frequency and severity of extreme weather events. Over the past few years, many farmers have reported that their insurance bills have more than doubled, with annual premiums exceeding $100,000. - read more

Revolutionising Crop Insurance with Satellite Technology

29 Oct 2025: Paige Estritori

In a significant advancement for Australian agriculture, Insurance Facilitators (IF), a family-owned underwriting agency, has introduced a data-driven crop insurance solution leveraging satellite technology. This innovative approach aims to address longstanding challenges in the industry, including premium leakage and risk accumulation, by providing more accurate and efficient risk assessments. - read more

Click for more Insurance News

Farm Insurance Articles

Essential Coverage vs. Optional Add-ons: Balancing Protection and Costs

For Australian farmers, having the right insurance coverage isn't just a safety net—it's an integral part of sustaining their livelihood. Natural disasters, unpredictable climate conditions, and the inherent risks of agricultural production underline the critical importance of robust insurance for the agricultural community. As farmers navigate the complexities of insurance, understanding the basics becomes the first step toward securing their assets and ensuring the continuity of their operations. - read more

Top 10 Ways Australian Farmers Can Slash Insurance Costs Without Risking Coverage

Welcome to our definitive guide for Australian farmers on managing one of the most crucial aspects of their business: insurance. As a cultivator of the land, you're no stranger to the unpredictability of nature and the market. From intense weather events to fluctuating market demands, your line of work comes with its unique set of risks. Hence, safeguarding your livelihood with the right insurance is not just important—it's essential. - read more

Income Protection for Farmers: Ensuring Stability Through Tough Times

The world of farming is one filled with uncertainties. Weather conditions, market prices, and various other factors can create a highly volatile income stream for those within the agricultural sector. This unpredictability can lead to financial instability that impacts not only the farmers themselves but also their families and the larger rural community. - read more

How to Choose the Right Farm Insurance Policy for Your Needs

Farm insurance is a type of coverage designed specifically for the unique risks and operations involved in farming. It encompasses protection for farm dwellings, equipment, livestock, and crops, offering a tailored approach that reflects the diverse needs of farm owners. This coverage can help safeguard your livelihood against unforeseen events that could disrupt farm operations or result in significant financial losses. - read more

Navigating Farm Succession: A Step-by-Step Guide for Rural Australian Families

Welcome to our comprehensive guide on navigating farm succession for rural Australian families. The journey of passing on a family farm from one generation to the next is both a critical and challenging milestone. Recognizing that every farm has its unique story and set of circumstances is fundamental to the process. - read more

Understanding Farm Equipment Insurance: What Rural Australians Need to Know

Farm equipment insurance is crucial for rural Australians who rely on their machinery for agricultural productivity. This insurance provides a safety net, helping to mitigate the financial risks associated with equipment loss or damage. - read more

Need a Quote?

Start your free farm insurance quote comparison here.

Knowledgebase

Underwriting:
The process by which an insurer determines the risk of insuring a client and decides the terms of coverage.

This website is owned and operated by Clark Family Pty Ltd (as Trustee for the Clark Family Trust) 43 Larch Street Tallebudgera QLD 4228, A.C.N. 010281008.

This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.

IMPORTANT: We do not provide financial product advice or credit assistance. We act solely as an introducer and refer enquiries to licensed third-party intermediaries, insurers, and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.