Cruising / life insurance

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StugeronSteve

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Reading the terms of the free life/travel/medical insurance, which is bundled together with my personal bank acc and credit card, I noticed that cover does not extend to accidents or loss occurring whilst crewing or sailing on a pleasure vessel more than 12M offshore, or on any passage to a foreign country. Does this sort of exclusion apply to life policies and should cruisers notify their insurers that they are engaged in a dangerous sport? I have never seen yachting listed as a hazardous pursuit in policy documents, but what is the official view?

I guess I had better dig my policies out and ask some questions.
 
It's a fairly common exclusion in travel policies. For some reason, they get nervous if you go more than twelve miles offshore. We have an annual travel policy and they've refused point blank to extend my cover on both the occasions when I have done a channel crossing in a small yot in the last couple of years (Unfortunately, I made the mistake of telling them who I was going with..... /forums/images/graemlins/grin.gif). I don't know about individual life insurance policies, though most employers' policies have such a wide spread of risk that they don't seem too bothered by offshore sailing - or so they told me when I enquired.

So - if there's an accident at sea, the GPS was on the blink and our DR plot put us 11.5 miles offshore, OK?
 
I will stick my head above the parapet and confess I am an IFA.

Life companies have no problem with sailing, unless its at a professional, ocean racing kind of level. I do not know what additional premium they would charge. Normal cruising, even to foreign shores, would not normally create problems.
 
Steve,

It's like any other risk - it is your responsibility to inform the insurer at the time you propose for a policy of all and any risks you are aware of that they may not be in relation to your activities.

Most have a special form for just about every activity from private flying to sailing, diving to ........well you get the picture.

As has already been said most will simply use this to make sure that your definition of recreational sailor matches their underwriters definition. Bit of a pain to fill out but I would recomend disclosure and completion rather than non disclosure on an assumption.

I will reitterate disclosure is at proposal - if later on your circumstances change the policy is not subject to review. It follows that if your intention is to go sailing but you haven't actually done any at the time of proposal you should disclose that.
 
Pretty much all of my life policies were in place long before we bought a boat, with the exception to a recent scheme which is linked to a share holders agreement. I mentioned sailing to the broker, at the time that this policy was taken out, and his only concern was that I didn't dive in connection with my sailing. Not sure if the yotting was noted though.

Just wondered whether I ought to inform all of the insurers retrospectively.
 
I would ensure you have the conversation with the broker 'evidenced' in some way if it worries you. Writing to them (rather than the insurers) now just clarifing what you told them and their response to ensure no misunderstandings should do. They will know the in's and outs of the insurers T&Cs and are responsible for passing on any relevant information you provided them.
 
Not able to comment on life policies but most bank linked travel policies leave a lot to be desired in my view. There was the recent incident of a girl falling while on hoilday and in need emergency treatment etc. She had had a drink the night before which showed up in a blood test. As a result her bank policy refused to pay out. We have a Family Yachtsman Gold annual policy- and it covers you for being more than 12 miles offshore. A friend of ours had a very bad fall whilst sailing with us last year and the service she received from Yachtmans was first class.
 
You do not need to specify yachting as a risk unless you race offshore regularly. Cruising is not reckoned to be hazardous for life assurance purposes.

The rules regarding life assurance are different to general insurance.

For example, if you modify your car after you have insured it, you must tell the insurer.

With life assurance, once the policy is in force, the risk can change without affecting the policy. So if you had no intention of, say, hang gliding when you took the policy out, but took it up later, you don't need to inform the insurer. If on the other hand, you did not disclose a material fact at the time you took the policy out, the insurance company would not pay out in the event of a claim.

Many, many years ago I was involved, peripherally, with a now retired Formula One driver. This was at the time he was driving Formula Ford and the insurance company gave him normal terms. He went on to a successful career in F1, Le Mans, and so on but still had ordinary rates on his life assurance!

Hope this helps, PM if you need further advice!!
 
[ QUOTE ]
The rules regarding life assurance are different to general insurance. For example, if you modify your car after you have insured it, you must tell the insurer.With life assurance, once the policy is in force, the risk can change without affecting the policy. So if you had no intention of, say, hang gliding when you took the policy out, but took it up later, you don't need to inform the insurer. If on the other hand, you did not disclose a material fact at the time you took the policy out, the insurance company would not pay out in the event of a claim.

[/ QUOTE ]

Is this a fact. When I took out my life policy I was a non smoker, had given up for 5 years. Shortly after I went back on the weed, stupid I know. I keep thinking that I ought to let the insurance co know, as smokers pay more for obvious reasons. Does this mean that because when I took out the policy I was a non smoker, with no intention of starting again, at that time, I don't need to let them know? Seems a bit odd!
 
Yes, you don't need to tell them. As long as you were a non-smoker when you took the poliy out, there is nothing the insurer can do if you subsequently smoke. In the same way as you would not expect to have to tell them if you got an ulcer, high blood pressure, etc....
 
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