A yachtsman who changed direction while sailing, heard a crash and saw his mast break and fall over the side of his boat and the sails partially submerge has won his fight to claim repair costs and mooring fees under a Lloyd’s Australia yacht insurance policy.

The vessel, now moored in Sydney, suffered substantial damage after the mast broke near the lower spreaders when the backstay turnbuckle suddenly parted.

An expert hired by Lloyd’s said the mast failure was due to corrosion and wear and tear on the backstay turnbuckle. The insurer said this fell within an exclusion for loss or damage caused by corrosion or oxidation.

But the Australian Financial Complaints Authority (AFCA) disagreed and determined Lloyd’s was not entitled to decline the claim.

“This determination is substantially in favour of the complainant,” AFCA said. “The insurer is liable to meet the complainant’s claim for loss and damage arising because of the dismasting and is required to settle the claim.”

Damage to the boat, which was insured for $220,000, was estimated at around $145,107, and storage and mooring fees at $4180. Lloyd’s must also contribute up to $10,000 towards expert reports.

Both parties agreed the backstay turnbuckle broke suddenly after the helmsman changed direction, causing the mast to break.

Each side engaged metallurgists to explain why the backstay turnbuckle broke.

The expert for Lloyd’s said the thread in the turnbuckle was worn and the original roots of the threads showed areas of red corrosion characteristic of “dezincification”, a corrosion process in alloys.

But the sailor’s expert challenged these findings, saying there had been a singular mechanical failure. “Dezincification” was insignificant and not a major contributing factor.

While the standing rigging had been replaced around eight months before the incident, the turnbuckles were reused and of an unknown age. Lloyd’s said this showed wear owing to the age of the turnbuckle.

However, the rigger who carried out the replacement said he inspected each of the turnbuckles before they were reused and they all looked in good condition.

“In 48 years rigging I have never come across a mast lost by failure of the turnbuckles,” the rigger said. “I allowed them to be used again with a new bottom-threaded toggle. [it has] never been a practice to change the turnbuckles every time the rigging is changed.”

AFCA says it was not satisfied Lloyd’s Australia had established application of the exclusions it relied on and concluded it “prefers the opinion provided by the complainant’s expert”.

Click here for the full ruling.