»Ê¹ÚÌåÓýapp

»Ê¹ÚÌåÓýapp Finance Act 1994, Schedule 7A, paragraph 5(1) exempts a contract:

…if it relates only to a lifeboat and is a contract of general insurance of a relevant class.

Paragraph 5(2) defines a relevant class:

� if it insures against risks arising from or in relation to

(a) accidents,

(b) ships, or

(c ) liabilities of ships,

(and no other risk)

Paragraph 6(1) of Schedule 7A also exempts insurance:

if it relates only to a lifeboat and lifeboat equipment and is such that, if it related only to a lifeboat, it would fall within paragraph 5 above.

»Ê¹ÚÌåÓýapprefore, the contract covering a lifeboat and its equipment must be written under classes 1, 6, and 12 if it is to be treated as exempt. However, in deciding whether a contract relates to lifeboat equipment, paragraph 6(2) of Schedule 7A says:

� the nature of the risks concerned is immaterial, and they may (for example) be risks of dying or sustaining injury or of loss or damage.

»Ê¹ÚÌåÓýapp purpose of the relief is, broadly, to reflect that available for the commercial shipping sector. »Ê¹ÚÌåÓýapp relief was not granted because of the charitable or voluntary status of the Royal National Lifeboat Institution(RNLI).

Definition of a “lifeboat�

Paragraph 5(3) of Schedule 7A defines “a lifeboat� as:

� a vessel used or to be used solely for rescue or assistance at sea.

»Ê¹ÚÌåÓýapp relief applies to sea-going lifeboats after they have been launched, but not during construction. This treatment is the same as that for ships (see IPT04350).

Definition of “lifeboat equipment�

Paragraph 6(3)(b) of Schedule 7A defines “lifeboat equipment� as:

� anything used or to be used solely in connection with a lifeboat.

This includes carriage equipment, tractors, winches and hauling equipment used solely for the launching and recovery of lifeboats.

What the exemption does not cover

»Ê¹ÚÌåÓýapp exemption does not extend to rescue craft on inland waterways, lakes and reservoirs, lifeboats under construction, or to vessels, which are not “lifeboatsâ€� but are used in training personnel in life saving techniques. »Ê¹ÚÌåÓýapp exemption does not extend to boat houses or slipways, or other assets or facilities of the RNLI - these are not considered to be “lifeboat equipment.â€�