Luxury boats abandoned on US coastline
Luxury yachts are being beached or sunk around the US coastline as their owners make fraudulent insurance claims.
A growing number of dumped boats are clogging the water around the coast of states such as Florida, according to a report in The New York Times.
The boats’ owners can no longer afford mooring and maintenance costs because of the recession, but have found themselves unable to sell off the vessels.
They’re also unable to pay for the boats to be officially scrapped.
Instead, they sandpaper the name and registry number off the boat, and abandon the boat in the middle of a busy harbour or beach the vessel at low tide.
Subsequent fraudulent insurance claims help the former boat owners to pay off debts.
Meanwhile, the boats pollute the sea, and attract thieves who strip the unused boats for metal to be sold in scrap yards.
“Our waters have become dumping grounds,” said Major Paul Ouellette of the Florida Fish and Wildlife Conservation Commission.
“It’s got to the point where something has to be done.”
In January, South Carolina passed a new law that imposes a penalty of $5,000 and 30 days jail sentence for anyone who abandons their vessel in a public waterway.
Category: Insurance News
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