BAVARIA AG recommends owners to re-flag their British registered boats and yachts before 31 December 2020.
If the UK is very likely to leave the European Union on 1 January 2021 with a disorderly exit, this will also have an impact on the insurance of boats and yachts. The contracts will be based on EU law, which will no longer apply to UK owners or yachts flying the UK flag. Bilateral agreements such as those with Norway, for example, do not yet exist – so from 1 January 2021, the UK would be comparable to any third country.
BAVARIA AG therefore advises all owners of boats and yachts up to 24 metres in length to change flag to the EU before 31 December 2020. Sandra Ahrabian, CEO of BAVARIA AG, says: “In order to realise this, the reference to an EU country must be available. If you live in London as a German, for example, this is not a problem at all”.
However, BAVARIA AG assures all British policyholders that their contracts will continue to run without any complications until they are due. There is no need for action until after that date; moreover, there is also the possibility that further negotiations between the EU and Great Britain have taken place. Nevertheless, the yacht sector is not at the top of the agenda of the talks.
In addition to insurance, disorderly Brexit also has an influence on tax law. According to current information, a British registered boat will be subject to VAT again when sold to an EU citizen. Sandra Ahrabian: “Also against this possible background, we have advised our customers to change flag.“
