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LAKE GEORGE---In the wake of the Ethan Allen boating disaster on Lake George last fall, the state Assembly has passed legislation which will require owners of all commercial passenger boats licensed in New York to carry an appropriate level of marine liability insurance.
The Senate has already passed a similar bill.
There is currently no requirement in New York State for private and commercial boats to be insured nor is there any state requirement that the passengers aboard wear life jackets.
The Assembly bill would require the owner of every public marine vessel covered by the state's Navigation Law to carry liability insurance in an amount determined appropriate by the state's Insurance Department. Proof of coverage would have to be submitted as a condition for the issuance of the annual certificate of inspection required of every vessel, and be produced upon demand by appropriate authorities. The legislation applies to boats operating on the navigable waters of New York State but not to those under the jurisdiction of the federal government.
As the lawsuits compound in the October capsizing of the tour boat Ethan Allen, it was learned that Shoreline Cruises, the boat's owner, apparently doesn't have adequate insurance to cover the losses.
Victims and families of the victims were told by the attorney for the boat's owner that the company can't help pay for funeral and hospitalization expenses because its insurance company refuses to pay.
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.
Shoreline's insurance carrier, Global Property Owners Association of Plantation, Fla., said that Shoreline carried only a commercial general liability policy which was limited to claims occurring on land. The insurance company reportedly encouraged Shoreline to add maritime coverage to their policy several years ago but to no avail. Shoreline reportedly has only a $2 million insurance policy which won't cover the accident and which attorneys have termed "grossly inadequate".
James Quirk, owner of Shoreline says that he was led to believe that he carried maritime 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.
Charles H. Wegman, a agent for Global, says Quirk and Shoreline don't have the coverage they think they have and that the policy that Quirk paid nearly $15,000 in premiums for only covered the company's boats while they were on dry land from May to October. Global says Quirk has only a general liability policy because Quirk refused to buy maritime insurance but Quirk disagrees and has paperwork which appears to support his contention.
Global Property Owners Association is not registered to sell insurance in Florida and Wegman, while licensed in Texas, is not a licensed insurance agent in Florida or New York.
There are investigations into the insurance matter underway in New York, Florida and Texas.
"It is 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," said Assemblyman Pete Grannis (D-Manhattan), chairman of the Assembly Insurance Committee. "I was shocked to learn that New York did not require any marine vessel to carry a liability insurance policy. This basic level of protection is needed not only to assure that passengers aboard commercial tour boats, but others on public waterways are able to recover their expenses and receive appropriate compensation in the event of an accident."
"Why anyone would choose to operate a boat on our waterways without liability insurance is beyond my comprehension," said Grannis. "While this legislation will not relieve the loss, pain or financial burdens of the survivors and victims families of the Ethan Allen accident, it will assure that passengers and others involved in accidents in the future will not be left without financial recourse against those responsible for such occurrences."
Grannis said that he is committed to working out a compromise to similar legislation passed by the Senate in March, sponsored by Sen. Betty Little (R-Queensbury).
The Senate version requires that owners of commercial watercraft operating on New York's navigable waters obtain a marine protection and indemnity insurance policy of not less than $1 million. The policy would have to be purchased from an insurance carrier or excess line broker authorized to do business in New York State.
Failure to obtain liability insurance would be a misdemeanor, punishable by a fine up to $10,000 and a prison sentence of up to 90 days. Operating without liability insurance coverage would also result in the revocation of a boat owner's certificate of inspection for at least one year.
Public boat owners could elect to voluntarily obtain marine liability coverage in excess of the $1 million minimum.
Earlier this year, Gov. George E. Pataki unveiled comprehensive new legislation that would strengthen the laws governing public vessel operation.
http://www.northcountrygazette.org/articles/030206BoatLaw.html 5-25-06
© 2006 North
Country Gazette
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