Plevier
Well-Known Member
basic insurance law. The insurer cannot refuse to pay 3rd party liability.
That's what I thought. However not correct, as I queried recently. The absolute liability to pay out seems to be specific to motor vehicle insurance.
Boat insurance policies - using varying words but they all do it - dump their liability in case of (e.g.) recklessness by the insured.
Recklessness is not defined but could possibly include cutting a large hole in the bottom of a boat?
Alternatively knowing use of an unseaworthy vessel? (I'm not saying it would be, but they might.)