Club Marine Insurance -- "Latent Defect"

[vinvaite]

I have had a problem whereby a piston developed a hole and motor therefore stuffed. The motor was stripped down in order to find a cause. Now it seems they cannot attribute the piston failure to anything whatsoever. Apparently it looks like a possible "latent defect" with the piston. The engine in question is a Volvo D4/300 with 1000hrs.


Now the insurance policy has an exclusion for "mechanical failures" -- however there is a clause whereby i am apparently covered for "Latent Defects", which is explicitly defined (in the polciy docs) as:


‘Latent Defect’ Any flaw in the material used in the
construction of the Boat that has now become evident
and would not have been discoverable by a competent
tradesperson carrying out an inspection.


So my question is, has anyone claimed on their club marine insurance for an engine failure under the latent defect clause? I have a feeling they are going to say that the "latent defect" clause will not apply to the engine.


After opinions from those with direct experience with the question at hand.

Also, i would suggest you all review your insurance policy, what's included/excluded with respect to mechanical failure.


thanks

[bluefin59]

If they can find a way out of paying they will I had a claim knocked back years ago on a blown 140 Suzuki 2 stroke motor and we never got a cent and I have never insured with club marine since . Matt

[aussiebasser]

An exclusion for mechanical failures would normal preclude any engine damage that is no caused by an accidental collision. Same deal with car insurance, they don't cover the engine blowing up.

[bigmac87]

I'm with aussiebasser. As with a car, if the engine goes bang/doesn't start and it's not your fault and you weren't in an accident/crash, you go to the manufacturer for a warranty claim, not your insurance provider.

[vinvaite]

This isn't about a foreseeable event due to lack of maintenance, or wear. It's about a component that has failed thousands of hours before the end of it's expected service life. The engine was pulled apart, there is no explanation/reason, as determined by experts (other than defective component_.

is anyone familiar with the "latent defect" clause in the club marine policy, why is it there/ anyone had any experience with it?

[aussiebasser]

Wouldn't "any flaw in the material used in the construction of the BOAT" mean that the motor is excluded? Are your Boat, Motor and Trailer listed separately on your policy?

[vinvaite]

sure but what is the BOAT?

trim tabs, bilge systems, the sink, toilet, rudder, steering, riggers?

does the the BOAT mean only HULL?

edit: here is the currently club marine policy
https://www.einsure.com.au/wb/public/openCurrentPolicyDocument/CML_POL/$File/CML_POL.pdf



‘Boat’ means the insured boat, which is either the boatdescribed in the Schedule or a Replacement Boat. It alsoincludes the insured boat’s:
• Hull(s);
• Motor(s);
• Masts, Spars, Rigging and Sails;
• Trailer (if specifically noted as covered on theSchedule);
• Equipment and Accessories;
• Boat Tender; and
• Personal Effects but only when on the insured boator the Boat Tender.

[bigmac87]

I'm not familiar with it but from what you are describing It sounds like an engine manufacturers fault/issue. Something I feel an insurer won't help fix. I could be wrong though

[aussiebasser]

Filll out your claim form and let us know how you go. The only people who can answer your question work for Club Marine.

[sportfish58]

A dribbly injector will put a hole through a piston.
Cheers

[vinvaite]

Those who have had previous experience claiming under this clause ("latent defect") may be able to help. Hence this post.

I am just trying to find someone who might know-- from personal experience

[vinvaite]

injectors were all tested by Bosch - and passed

[myusernam]

keywords construction of the boat, not the motor. motor covered by manufacturers warranty and stat warranty against defects. how old is it?

[Darren J]

I think you will find the mechanical defect exclusion is overarching. i.e., latent defects are fine to claim for any part of the boat, but not in relation to mechanical failure, which this is, irrespective of whether it was latent.

But do read your policy closely, if you think it reads otherwise, take them to task on it, but I think they will go straight to above.
However I hope you prove me (and them) wrong!.

[vinvaite]

keywords construction of the boat, not the motor. motor covered by manufacturers warranty and stat warranty against defects. how old is it?

The "boat" includes motors (also including many other things) see above

[aussiebasser]

They may use the argument that a "latent defect" would have made itself known before 1000 hours.

[myusernam]

The "boat" includes motors (also including many other things) see above
well you at least can have a go.

1000 hours is low if it's only new. (im guessing not) if it was only several years old I would be appealing to volvo under statutory warranty provisions. It's a valuable item, and you should expect reasonable life. Australian consumer law strictest in the world. Read up on stat warranty. 40 k item has to have a reasonable life span
how much is the rebuild?

[vinvaite]

thanks for the response that's interesting - will check out stat warranty provisions. Yes 1000hrs is apparently low (certainly well within the expected service life, i am told). Volvo (engine manufacturer) have already been engaged and have said "tough luck". A rebuild is in the order of $35k

[myusernam]

p.s... I once had a sizeable claim rejected by club marine. (many moons ago) It sat with an assesor for months. classic stalling tactics. i was patient. they tried to limit payout etc/ put caveats on it, find excuses. But I had read the policy so i stuck to my guns. They falsly rejected.
I immediatley rang new policies. Asked a couple of coverage questions and then finally my scenario as a potentioal new customer and asked if that scenario was covered. Sales chick said certainly would be. Sweet I said, because I so happen do have an existing policy under those exact circumstances, and u have rejected the claim. Can you put me on to your supervisor? Claim paid in full.

Not long after, they re-worded the policy :) I was only about 20 at the time.
Always remain courtious and polite in dealings. Good Luck.

[gofishin]

Although I think the D4's are a lot less effected, this problem is not uncommon in D3 and D6's I believe.

Google and THT for one is your friend. Here is an example I recall (as I only read it recently). Even 'Latent Defect' is mentioned in one post (post #12).

http://www.thehulltruth.com/boating-forum/669542-volvo-d4-failure-help-comments-please.html

However, U.S. Insurance Policies may be a lot different to ours too, even though the same term is used.

As others have said, CM are probably the only ones that can 'really' answer your question.
Cheers
Brendon



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[vinvaite]

gofishin that's my thread (on THT).

also have an interesting one of boatdiesel.com too

[gofishin]

Ahhhh, OK. :).


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[Shark Poker]

Always remain courtious and polite in dealings. Good Luck.[/QUOTE]

Best thing you ever typed on this forum for sure myusernam