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ALBANY---In the wake of the tragic Ethan Allen boating accident on Lake George, the chairman of the state Assembly’s insurance committee has introduced a new bill which would require owners of commercial tour boats to carry marine liability insurance.
Assemblyman Pete Grannis, D-Manhattan, said that it was “sad that it took the terrible tragedy of the capsizing of the Ethan Allen tour boat on Lake George last October to bring to light the need for this legislation”.
It was revealed last week that Shoreline Cruises Inc. of Lake George, the boat’s owner, allegedly did not carry marine liability insurance and was rejecting claims for medical, funeral and other costs for victims and their families.
The 38-foot glass enclosed Ethan Allen was hosting a group of senior citizens from Michigan and Ohio on an hour-long fall foliage tour along the Lake George shoreline on Oct. 2 when it capsized and sank in 70 feet of water, killing 20 of the 47 passengers on board. The National Transportation Safety Board is continuing its investigation into the cause of the accident and expects to release a preliminary report in the coming weeks.
There currently is no state requirement for private and commercial boats to carry liability insurance such as that required for motor vehicles.
The bill would require that all public marine vessels covered by state Navigation law to carry liability policies in an amount determined “appropriate” by the state Insurance Department. Policies would be examined as part of the annual vessel inspections conducted by the state.
Troy attorney E. Stewart Jones who has recently filed two more claims for relatives of victims of the boating mishap says that Shoreline has only a $2 million insurance policy which won’t cover the accident and which Jones has termed “grossly inadequate”.
James Quirk, owner of Shoreline says that he was led to believe that he carried marine liability insurance. Quirk has said that the policy his company had covered the boat when it was in the water but the insurance company says otherwise.
Jones says if there isn’t any insurance coverage then either a mistake has been made or a fraud committed.
Michael Allweiss of St. Petersburg, Fla., attorney for Shoreline Cruises, says that the company may have been the victim of an insurance fraud which left the company with no insurance coverage. “The bottom line appears to be that Shoreline Cruises were victimized by a fairly elaborate insurance scam”, Alweiss said. 2-26-06
© 2005 North
Country Gazette
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