The company that owns the iconic Jumbo Floating Restaurant will not receive an insurance payout for the vessel’s sinking.
According to owner Aberdeen Restaurant Enterprises, the vessel was covered by a protection and indemnity policy for third-party liability, in accordance with maritime regulations. This insurance policy only covers third-party losses, but not losses to the company.
On June 19, the ill-fated floating restaurant was lost in the South China Sea, near the Paracel Islands while it was being towed, CNA reported. However, there has been scepticism over the incident, after the restaurant closed in March 2020 after almost a decade of troubled finances.
Some social media users aired suspicions that the vessel was intentionally sunk as it had become a liability for its owners, while others insinuated that the sinking could have been for “insurance purposes”.
Further complicating matters were the allegedly inconsistent statements by the owner, causing confusion whether the vessel merely capsized or totally sank below the water. The company denied this, saying that its response to the incident has been “consistent”.
“The company hired professional marine engineers to inspect the hull and hoardings and obtained approval from the authorities before the vessel departed from Hong Kong,” Aberdeen said. “The tug company that towed the vessel out of Hong Kong was hired by a licensed third-party broker. The towing method was in compliance with international maritime regulations and customary practices.”
The Jumbo Floating Restaurant was opened in 1976 and was owned by the late casino magnate Stanley Ho. It was 76 metres long and could hold 2,300 diners. It reportedly cost over HK$30 million (SG$5.3 million) to build.
The restaurant, whose design evoked a Chinese imperial palace, was once a must-see tourist attraction in Hong Kong. In its heyday, it attracted several high-profile visitors, including Queen Elizabeth II and Tom Cruise, and was featured in a number of Chinese and Hollywood movies.
