Are you getting value for money?
Whether you need insurance cover for travel, third-party liability, medical assistance, personal accident or dive equipment, the market can be a minefield for those who don't read the small print. Diver asked BBC financial journalist Colin Wilde to pick his way through the tiny lettering

INSURERS take a dim view of people who dress up in rubber and pretend to be fish. Some companies consider diving not a sport but an extremely hazardous activity.
Myopic they might be, but what you must never do when buying insurance is assume that diving is seen as a normal activity.
Divers were rated as risky as parachutists and wall-of-death riders until not that long ago. It was almost impossible to get insured. The world has moved on since Captain Nemo; sadly, many insurers have not.
General Accident is typical: "If you are a bit of a daredevil, think twice before bungee-jumping, parascending or jet ski-ing, as your policy may not cover you if you have a nasty accident." Add scuba to that list and you won't go far wrong.
Norwich Union, another of the big life companies, echoes such apprehensions. "We do see it as a dangerous sport and can't give a definitive answer about diving generally," says Liz Moore. "We look at each individual case, where they do it and how often, what they do while they are underwater, and finally the level of training and qualification."
What if you don't bother to tell the company that you are a diver when you take out life assurance, or a pension or mortgage-protection policy?
"If there was non-disclosure of the activity it would quite likely make a policy invalid in the event of death," says Moore. Try explaining that to a bereaved spouse!
Unfortunately, many life companies still use data based on Royal Navy statistics now more than 30 years old, which is why sport diving is frequently excluded from normal policy cover. If this is the case, they will not pay out if you die or are disabled in a diving accident, so check this with your insurer.
More typically, however, the data is used as an excuse to jack up premiums on grounds of "additional risk". "There is no actuarial justification for this," says Lloyd's underwriter Neil Fitzgerald. He put his own figures together from different incident reports to write his policies. "The perception of diving has greatly improved and if people are trained properly by recognised agencies, the expectation of death is no greater than with horse-riding".
Better training and equipment, greater knowledge and comparatively fewer accidents and fatalities have all played their part in helping some companies soften their position in recent years. And as the sport has gained in popularity, new insurers have emerged to offer a more inclusive and affordable range of insurance protection for divers.
The number of British divers is estimated at around 150,000. "Probably about a third of these are uninsured and always will be, another third think they are covered but aren't, and the last third are our potential clients," reckons Bob Archell of Dive Master Insurance Consultants. If he is near the mark, that is a lot of people with inadequate protection.
We all want the best cover for the cheapest price but it is important to look carefully at any policy to find out where the gaps are. Cheap insurance is easy to find if you don't read the small print.

Third-part liability
With the notable exception of PADI, most organisations offering diving qualifications provide third-party liability cover as an integral part of their basic membership package. This is meant to protect you against any claims for injuring or causing the death of another diver, or for accidental damage to someone else's property or equipment.
Damage claims to property should be straightforward. A dive club uses a local swimming pool and someone drops a weightbelt, smashing the tiles. The local authority bills the club for damages, the club passes the bill on to its dive organisation and the claim eventually gets settled by the organisation's insurers.
Personal injury or death claims, however, are a lot scarier and more complicated once the legal vultures home in on the potentially huge sums involved ­ especially if the accident happens under US legal juridiction.
In a worst-case scenario, if your buddy dies on you, for whatever reason, or is injured and perhaps permanently disabled, you could find yourself in jail, as well as on the wrong end of an extremely expensive lawsuit. That's when you really need that personal liability cover. Sub-Aqua Association and Scottish Sub-Aqua Club members are protected against claims of up to £2m worldwide, while British Sub-Aqua Club indemnity is even higher, up to £5m.
"Worldwide", however, means different things to different insurers. Close inspection of any of these policies reveals geographical exceptions to the rules, and other exclusions not highlighted in the summary of cover.
SAA members, for example, are not covered for damage or injury in North America and the Caribbean, and there are similar restrictions in these areas for BSAC divers, especially if they live there.
There are further complications in the case of the BSAC because its liability is ultimately insured by the American Insurance Group (AIG), a US company. Under US law companies are forbidden to trade with Cuba, Iran, Libya, Sudan and North Korea, so the policy is invalid there. If you exterminate a Cuban diver, don't expect help from the BSAC.
Closer to home, BSAC diver Dave Copley in the Isle of Man has been trying to establish whether he is covered. "I want to know if the policy is valid here because Manx law is a bit different from the mainland. I've called HQ but I've got nowhere and I still don't know where we stand."
BSAC Business Director David Roberts says: "It's fair comment that customer service has been bad in the past because only a handful of people here probably understood the policy but hopefully that has now changed with all the recent improvements and staff training at HQ."
Meanwhile Dave Copley is still waiting for an answer.
Dive branches are mistaken if they assume that their third-party liability offers blanket protection and automatically extends to the club RIB. SSAC National Diving Officer Ian Seath is clear on this: "There is no provision for RIBs or boats and we expect each branch to have its own separate boat cover."
Should you run someone over with a boat, it is the boat insurance and not third-party cover that fields the claim. If all else fails, the BSAC and SSAC both have contingent liability, but don't rely on this.
There are also some interesting exclusions on branch equipment. Under the BSAC policy there is no cover for faulty cylinders and "associated equipment" such as regulators. This is a bit like having a sky-diving policy that insures everything except the parachute.
The sale of secondhand equipment is also excluded, so if you sell or loan club or personal kit to someone and they drown, again you may have no safety net if there is a claim.
Ideally, you should check the details of cover with your dive organisation before such a situation arises, by taking a look at the contents of the master policy.
Unfortunately, this is proving a little difficult for BSAC members. Lloyd's man and Southend-on-Sea Branch Treasurer Neil Fitzgerald says: "In my job you have to be fully aware of the potential risks involved in any situation, so I've been trying to get a copy of the master policy document for the past seven years to check this, but I still can't get hold of one."
Neither the BSAC, its insurance broker Sedgwick, nor AIG is willing to provide this document to any insured members. "Unfortunately, we can't issue copies of the master policy because it's commercially sensitive," says David Roberts.
This is not normal trade practice, however, and the Association of British Insurers echoes the concerns of members. "We can't understand why a company or organisation should refuse to show a copy of a master policy to a member of the public, and particularly to one of its insured members," says Malcolm Tarling at the ABI.
Where there are doubts about the extent of cover, it is always better to take out extra liability cover. This should cost no more than around £10 from a dive insurance broker.
Professional Association of Diving Instructors divers are a little different. They pay £49.95 to join their new Dive Society and get liability cover from PADI along with their handbook of discount vouchers for shops, cinemas, cappuccino and socks.
Dive schools and professional divers are excluded from third-party block policies and need to make their own provision for public liability, equipment and participant cover, usually from a specialised broker. PADI has devised its own liability cover for dive masters and instructors through the American broker Vicencia & Buckley.
The BSAC has been working on a policy for dive schools, too. Such policies normally cover all instructors working at a school, but anyone else involved in professional diving would be better served by going to a specialist dive insurance agent or broker. In the UK Dive Master, Greasbrough, Scubasure and Westfield all provide policies to meet most situations.

Travel
Nine out of ten people buy their holiday insurance from a travel agent or a tour operator, which illustrates the persuasiveness of salespeople as much as it does the apathy of British tourists ­ including divers.
It would be fine if travel policies sold this way were great deals and suitable for divers. Unfortunately, most are not. You are far better off going direct to one of the big travel insurers, especially if you are likely to make more than one foreign trip a year.
Standard travel policies are precisely that; they are designed primarily for the package-holiday market and cover only the basics ­ flight delays and holiday cancellations; lost or stolen luggage up to £1500, usually with a maximum £250 per single item and valuables up to £250; and accidents and illness.
If diving is in a standard travel policy at all, it is usually as an afterthought or an optional extra.
In either case, it is almost always bound up in tight restrictions, with depth typically limited to 30m and the need to be accompanied by an instructor or dive guide. There is no protection at all for equipment while in use or lying around on a boat.
More serious are the frequent omissions in medical cover that are revealed only when it is too late.
Robert Lawty thought he had bought a fully comprehensive Chubb travel policy from the Hong Kong and Shanghai Banking Corporation before going diving in Hawaii. On an ascent from 35m his wife was hit with decompression sickness after a gas bubble was shunted across her heart.
She needed emergency air evacuation to a recompression chamber on the next island. The policy covered ambulances and the cost of the chamber ­ but not helicopters.
Robert had to pay a $12,000 bill before he could leave. "I'm now very careful which insurance I buy and I always read the policy from beginning to end," he says.
Remember, tour operators can derive 50-70 per cent commission on insurance, so remember where they are coming from when they are pressuring you into buying a policy.
If they tell you that their policies cover you for diving, ask what exactly is and is not included, raise some of the "what if?" scenarios, get a copy of the policy wording and, if necessary, an accompanying letter confirming any additional details before you take out the contract.
Yes, they will think you're a pain and it might take time, but ignorance is no excuse if you have an accident.
Travel agents sometimes insist that you take out a policy with your holiday, or pay extra. Don't let them. From November new rules come into force that should crack down on selling conditional insurance.
A nasty variant of this malpractice has been operating in parts of the Maldives, where some resorts have been charging divers an obligatory $10 fee to join the Divers Alert Network (DAN) scheme, irrespective of whatever insurance they already have. With around a thousand divers a day, someone is making a lot of money out of this practice, currently under investigation by the Maldives Ministry of Finance.
Some insurers have sought to woo divers by allowing them to go deeper. Home & Overseas, part of the Eagle Star group, has increased the 30m limit on its own annual travel policy to 70m for the package it put together for the BSAC earlier this year.
Leaving aside that 70m is beyond the Club's normal recommended limits, note one anomaly: the promotional leaflet says that the maximum duration of any one trip is 60 days, while the policy notes state 31. It costs £94 for a BSAC annual policy worldwide, £120 with a partner; single-trip rates for Europe and the Red Sea are quite good at £18.86 for 17 days.
Westfield Insurance Brokers is celebrating 30 years in the diving business. "We don't impose a specific depth limit, we simply require that divers conform with the limits imposed by their diving organisation, depending on their qualification," says the company's Bill Caldwell, and this is not an unusual approach.
But some travel insurers recognise that depth alone is less critical than specialised medical cover. "There is no loading for divers ­ unlike most we don't have a problem with it," says Andrew Blowers, Managing Director of Options Insurance.
Options is one of the few companies to cover lost or damaged diving equipment while in use. Like competitor Churchill Insurance, it has tailored its policies to include a broad sports parish. Both limit divers to the depths prescribed by their qualifications; both include the cost of air evacuation and hyperbaric chambers where necessary.
An Options annual multi-trip policy for worldwide travel up to 60 days costs £60, and £83 with a partner. Its Gold Plus cover for 17 days in the Red Sea costs £13.60 per person and £29.10 worldwide. There is a 10 per cent annual no-claims discount; Churchill gives 5 per cent off.
Churchill also offers a 20 per cent discount off its annual policies if you are prepared to waive the risk of losing baggage and money and keep these on your household policy. This brings the cost down to a more affordable £72 (£94.40 with partner).
If you have separate medical cover there is an additional 20 per cent off, reducing the premium to £57.60.
But premiums double for 61-70 year-olds and triple for 71-plus! Other companies also discriminate against wrinklies; even dive specialist Greasbrough has an upper age limit of 65.
A critical omission for divers in most policies is cancellation due to colds or infection. Medically certified illness is acceptable but not a common cold ­ the last thing you want before joining a liveaboard.
Tour operator Oonasdivers uses specialist broker Chris Hindle in Worcester to plug this gap. Around 2500 divers a year buy the operator's trips, and 90 per cent take the insurance. "Nobody has ever lost their bags and thankfully we've never had to use it for medical expenses. Most of our claims are for colds and blocked sinuses," says Oonasdivers' Amanda Levick.
The cost is £42 for 17 days in Egypt, £83 for Thailand, again with 20 per cent discount if kit and money is on your household policy.
In general, it is cheaper to buy an annual travel policy from a direct insurer if you are going to make several trips a year. Travel insurance benefits are remarkably similar on paper, but in practice and on pay-out they are not. Companies copy policies from others to win business, so it is essential to read the small print.
Shopping around avoids last-minute deals, travel agency commissions and, more importantly, obtains the best cover to suit your needs.

Medical assistance
Medical assistance insurance aims to plug the gaps left by many travel policies. It provides access to a 24-hour emergency service that co-ordinates expert medical advice and hospitalisation or rescue, and should also cover air evacuation, recompression chamber treatment, medicines and eventual repatriation.
Hyperbaric chambers and air evacuation are usually the two most expensive items. It costs around £8000 to put someone in the chamber at Sharm el Sheik, and this leaps to £20,000 if a helicopter rescue from southern Egypt is involved. In the Caribbean or Pacific that figure could easily double. It is easy to see why at least £100,000 in medical expenses and evacuation cover is realistic.
One of the cheapest and most popular medical programmes for divers worldwide is sold by DAN, the US non-profit organisation. It is linked with PADI in the States but still relatively unknown in the UK, with just 1400 members here.
Emergency travel assistance and various levels of medical cover up to $100,000 come with each of its five membership plans, which were revamped earlier this year.
Overall cover has been improved but, as ever, exclusions and default clauses are buried in the small print. Claims are rejected if DAN is not notified of an accident within three days, for example, and no expenses will be reimbursed if medical assistance is not approved, authorised and arranged by DAN first!
If you get a bend in some far-flung place you need immediate treatment, not a wait until someone wakes up on the other side of the world to OK it or send you to their preferred clinic.
Also, this policy is subrogated to all other insurance, which must be disclosed or it is invalid. In other words, DAN will seek to claim off the other insurers first. Its European contract presents another problem for British divers; it is based on Italian commercial law, so woe betide anyone in dispute with it!
"We used to send a lot of business to DAN but until it comes under English law we won't touch it," says Bob Archell, Managing Director of Dive Master Insurance Consultants in Essex. It spent two years putting its own "IDEC" policy together, advised by doctors at the Diving Diseases Research Centre in Plymouth.
Although not cheap, this is one of the most comprehensive policies on the market, priced at £81 for the year and £21.50 for 17 days in Egypt. It has up to $200,000 of medical benefits and is underwritten by Lloyd's.
"It's not the cheapest because it is a primary policy, designed to give first-line cover, but it has been written by divers for divers and picks up where normal travel policies leave off ­ which is normally on the tarmac at Heathrow," says Archell.
One virtue of IDEC is that it does not stop on arriving home, so you can continue to get specialist medical treatment for a diving injury.
PADI has also hooked up with the DDRC in the UK as part of its Diver Protection Programme, which is available to certified divers from any organisation. There are three levels of cover, Silver, Gold and Platinum, with medical benefits up to $120,000 but just $10,000 for death or disability. Depth limit is 40m and any equipment lost during an emergency is covered. The policy operates within the UK, not only overseas.

Personal accident
Full medical cover should ensure that you get the right treatment and aftercare, but it will not pay the bills if you are unable to return to work after a diving accident.
A mortgage protection policy is meant to look after house payments to the bank or building society, providing diving is not excluded as a "wilful exposure to hazard" but, like income protection cover, it is expensive to put in place. A much cheaper variant is a personal accident policy.
The SAA is unique among British diver training organisations in providing personal accident cover as part of its £50 annual membership package. It will pay £12,500 for death or permanent disablement and a basic £25 a week benefit to someone who is temporarily disabled and in full-time employment.
It's not a fortune, but better than nothing. The BSAC is working on a similar package for members.
Most of the dive insurance brokers already have policies on the market. With Greasbrough's Dive-Guard policy, for example, you buy different numbers of units, each providing £100 a week disability benefit for up to 52 weeks, or £100,000 for death.
The premium for a single unit is £48, plus insurance premium tax of 4 per cent. Chris Hindle in Worcester offers a cheaper version of this which costs £9 per unit for £40 a week benefit and £4000 on death.

Equipment
Valuables and personal effects, which include diving equipment, are normally covered by a household contents policy, especially if it is an "all-risks" policy or has an optional extension to cover items out of the home for up to 60 days worldwide.
Dive gear is considered as sporting equipment by most insurers but the one notable gap in cover is for loss or damage while you are using it. There is always an exception to the rule, of course, and Norwich Union does cover this hole. Otherwise, for peace of mind you need yet more insurance.
Kit policies start at around £25 per £1000-worth of gear. The new BSAC policy with Chubb, for example, which is on a "new for old" replacement basis, is very reasonable at £50 a year for up to £1750 of kit. However, there is a hefty £100 or 10 per cent of loss excess, rising to £250 for theft from locked vehicles. There must be evidence of a forcible entry or the claim is rejected.
"It's amazing how many people have watches and computers falling out of their stab jackets!" says Bob Archell. "It's the dishonest divers who sell their kit or ditch it on purpose who jack up the premiums."
Chris Hindle echoes that sentiment. "There's a lot of fraud, so not surprisingly equipment cover is expensive and premiums will continue to increase as long as people continue ripping off the insurance companies."

Mind the Gap
Insurance is a bit of a minefield but the message "Mind the Gap" is familiar to anyone who has travelled on London Underground. Check out your life and pensions policies first, to make sure there are no exclusions for diving. If everything is all right, make sure your household contents has the worldwide all-risk cover for dive kit and valuables.
Decide what mix of travel and medical protection you want, depending on where you are diving and how often.
The cheapest policy is rarely the best, and sometimes you really do get what you pay for, so decide what it is worth to be safe rather than sorry. And should you ever be in dispute with an insurer and are not happy, you can always take your complaint to the Insurance Ombudsman.

Contacts British Sub-Aqua Club 0151 350 6215 Christopher Hindle Insurance Brokers (Scubasure) 01905 612944 Chubb Insurance (BSAC equipment) 0171 867 5555 Churchill Travel Insurance 0800 026 4050 Club Direct Travel Insurance 01243 817766 DAN (Divers Alert Network) Europe 07970 821222 Dive Master Insurance Consultants 01702 476902 Greasbrough Insurance Services (Dive-Guard) 01709 555221/563332 Home & Overseas Insurance (BSAC travel) 0345 023076 Mardon Insurance Brokers UK 01743 232688 Regal Diving/Maclean Kenton Coomber 01268 5909658 Options Insurance Services 01252 747747 PADI International 0117 300 7300 Sub-Aqua Association 0151 287 1001 Scottish Sub-Aqua Club 0141 425 1021 Westfield Insurance Brokers 01483 880086

Travel policies

Policy	Medical expenses	Baggage	Money	Cancellation	Personal accident	Public liability	Delay	Depth limit	9 days/ Red Sea	Annual worldwide
BSAC (Home & Overseas)	£2m	£15,000	£500	£3,000	£25,000	£2m	£100	70m	£16.21	£94.09
Chris Hindle (Scubasure)	£5m	£1,500	£500	£4,000	£15,000	£2m	£100	-	£36	£155.10
Churchill	£2m	£1,500	£250	£5,000	£20,000	£2m	£200	-	£15.25	£90
Club Direct	£2m	£2,000	£500	£3,000	£25,000	£2m	£250	-	£19.69	£99
Dive Master	£3m	£1,500	£400	£3,000	£15,000	£2m	£60	50m air	£20	£123.38
Greasbrough (Dive-Guard)	£2m	£1,500	£200	£3,000	£10,000	£2m	£25	-	£27.73	£129.84
Mardon	£5m	£1,500	£500	£5,000	£25,000	£2m	£100	-	-	£101.81
Options GoldPlus	£10m	£2,000	£500	£3,000	£30,000	£2m	£300	-	£11.40	£60
Regal Diving/MKC	£2m	£2,000	£500	£5,000	£10,000	£1m	£250	30m	£22	n/a
Westfield	£5m	£2,000	£750	£5,000	£25,000	£1m	£600	-	£23.50	£94
*All prices include Insurance Premium Tax at 17.5 per cent, introduced in August

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Appeared in DIVER - November 1998

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