Take cover before you leave

Take cover before you leave

Holiday adventure activities may require a specialist insurance policy

WHAT would happen if a holidaymaker on a beach in Greece had an urge to try a water sport and was involved in an accident?

Under most policies he or she would be covered. But transfer the client to New Zealand, where he or she is about to bungee jump off a bridge and the picture could change.

As people become more adventurous on their holidays, travel agents are being urged to look more carefully at various policies.

Voyager director John Peters said: “We cover white-water rafting and bungee jumping on our standard policy if they are done on an incidental basis. If someone is going on a white-water rafting holiday we’d want that to be declared.”

Group chief executive of Added Travel Protection Stephen Howard said: “Agents need to remember that not all policies cover all activities.”

Standard holiday policies do cover clients who decide to take part in spur of the moment beachside activities. But if the client is likely to take part in multiple activities, agents should offer a specialised policy offered by companies such as Perry Gamble, Citybond, PJ Hayman and Ketteridge.

Citybond sales director Iain Chalmers said: “I am convinced more people go on holiday to take part in activities. It worries me that agents don’t ask clients what they’ll be doing.

“Ordinary policies don’t give holidaymakers full activity cover. People should take out a specialised policy, as they’d buy winter sports insurance to cover skiing holidays.”

Citybond’s Spectrum Sports policy works by raising the medical excess as risk increases. Abseiling, mountain biking and windsurfing carry a £45 excess, but bungee jumping, hot-air ballooning or white-water rafting have a £150 excess.

Ketteridge general manager sales Doug Weston said:”In training sessions I tell agents to ask clients if they’ll be taking part in a hazardous activity while away.

“If they get the opportunity on holiday to do something risky they might stop to find out if they are covered.”

Perry Gamble chairman Joe Perry admits sales of the company’s ActivityTrav policy are minimal because “agents are not switched on to selling it.”

The benefit for consumers of an ActivityTrav policy is the insurance of sporting equipment. Equipment cover is particularly important for experienced divers, as is the fact that they can pay an extra premium and be sure they are covered for diving below 30 metres. Divers wanting to go below 30 metres would pay 70% extra on the ActivityTrav policy, on top of the basic premium, which costs £21.50 for 17 days in Europe.

Commission top-ups

Agents can benefit from selling an activity policy because they earn more commission from the higher premiums.

ExtraSure’s Activitysure policy, for instance, pays 20% commission – 17 days worldwide cover for activities such aswhite-water rafting, dog sledding and hot-air ballooning costs £37.80.

However, that is above standard holiday insurance which clients need to take, as ActivitySure is only valid while the policyholder is taking part in the activity.

An annual ActivitySure policy costs between £40.50 and £247.50 depending on the activities covered.

Preferential provides a list for agents showing which activities are covered under its Elite annual multi-trip policy and can be covered on payment of additional premium, such as abseiling and mountain biking, both 50% more.

It also lists activities not covered.

sample policies

Ketteridge Group

Name of policy: AdventuresSample activities covered: category I – yachting, non-hazardous trekking; II – jet-skiing, parascending; III – white-water rafting and canoeing; IV – certain winter sports; V – bobsleigh, rock climbing.

Sample premium: £51.30 for 17 days’ worldwide including category I activities. II add 25%; III add 40%; IV add 60%; V add 80%.

Citybond

Name of policy: Select SportsSample activities covered: List A – (medical excess to £45) abseiling, water skiing, cycling, pony trekking; B – (medical excess to £150) bungee jumping, canoeing, paragliding, diving to 30m.Sample premium: £45 for 17 days worldwide.

Perry Gamble

Name of policy: ActivityTravSample activities covered: category I – abseiling, safaris; II – cross-country skiing, scuba diving to 10m; III – hot-air ballooning, scuba diving to 30m; IV – hang gliding; V – mountaineering, rock climbing.

Sample premium: £40.20 for 17 days’ worldwide including category I activities; II add 20%; III add 35%; IV add 70%; V add 90%;

Look before you leap: make sure you read the small print in your policy before you embark on adventure activities

High seas: water sports may carry an excess depending on the policy