Trip Insurance Issue: Read & Contact DAN

If you are a DAN member, and if you have ever considered purchasing trip cancellation insurance, read on:

I was scheduled to make a cave diving trip to Mexico starting May 2. With the Swine Flu outbreak looming, I purchased trip insurance through DAN since that organization provides insurance geared toward divers. (The insurance provided medical coverage, and trip cancellation coverage.) As the date of my trip approached, I decided that it would be smart to delay my trip rather than take a risk by going forward with my plans. This was when the fun started.

I heard on the news that many airlines were waiving charges for changes to tickets under the circumstances, and this was confirmed on my selected airline's web site. However, I still had to reach my dive provider (which I provided a hefty deposit), and my booked hotel via email (which I had paid for in full ahead of time), which always takes a good amount of time. With things in doubt, I figured that this would be a good time to contact DAN's insurance carrier about the potential insurance claim that was on the horizon.

I was shocked to find the insurance carrier saying that, inasmuch as there was "only" a "travel advisory," and not a prohibition from the government from travel to Mexico, they would not pay a trip cancellation or delay claim. Since I was still hopeful to reschedule my trip, I asked if I could switch the dates of coverage to my new intended dates of travel without having to pay for a second policy. I was told that the insurance company would take this under consideration, and that I would have to jump through hoops (my words, not theirs) by sending written requests and the usual stalling paperwork that would almost certainly not end up in a decision before my next intended date of travel. They "might" make a special exception to change the coverage dates without charging more.

Okay, not everything coming from the insurer's representative was completely cold. The representative suggested that I contact DAN Member Services to see if they could do anything about getting the effective dates of coverage changed without additional charges. So, that was my next move.

I then contacted DAN Member Services to voice my concern that a medical based organization for divers would force their membership to have to make a decision to either lose their trip costs by taking a prudent medical precaution by not making trips to Mexico, or, even worse, feeling forced, by financial circumstances, to go forward with their scheduled dive trips to Mexico, and thereafter becoming seriously ill or worse. How could an organization made up of medical professionals take such a stance?

Meanwhile, I was lucky enough to find that my booked hotel would have no problem switching dates. Ditto for the airline due to these special circumstances (and without incurring a charge). Although things at first were not certain with the dive shop, this also finally worked out. So, I requested that DAN would at least change my dates of coverage without forcing me to pay for a second policy.

After a day or so, DAN Member Services informed me that they would make this "exception," changing my dates of coverage. However, I never got a final answer about whether they would be willing to change their policy coverage in the future to prevent other divers from having to decide about risking money or taking a health chance on a trip to a zone with a "travel advisory." The DAN representative told me that DAN is taking this issue "under consideration."

If you are a DAN member, it is time for you to contact DAN to inform them of your stance as a member on this issue. Medical organizations should provide proper insurance coverage for divers that does not potentially push them to jeopardize their health in the face of a significant financial expense. DAN needs to change its cancellation insurance coverage to automatically include cancellations due to health-based trip advisories, period. This should not be a "special exception."

I don't want other divers out there to have to make the tough decision that I was almost forced to make. Please contact DAN (you can even fill out the "Contact DAN" form on their web site) to voice your concern as a member. If enough members contact them to voice our opinion, I would imagine that DAN will realize how strongly the membership feels about this issue. It might help sway the policy decision in the favor of diver members.

"DAN" is really two organizations.

There is the hyperbaric/dive medicine advisory group. This is the organization that is affiliated with Duke and is staffed with physicians, etc. When you "join" DAN for $29/year, this is what that money supports. A non-profit, and a good one. You don't have to be a member to call them with a diving related medical question, though IMO its a really good idea to support such a great resource.

There is also DAN the dive insurance brokering group. This is the organization that sells diver accident insurance, equipment insurance, trip cancellation insurance. As a point of fact, they are actually selling us policies from our friends at AIG (yeah, that $454 million dollar bogus bonus AIG). Obviously, this is the for-profit arm of DAN. To buy insurance from this group, you first have to "join" the non-profit (above).

What's my point? That you are dealing with the insurance brokers (even when you are dealing with Member Services) when you are trying to get them to pay out for, or correct, your trip cancellation insurance. There aren't any real doctors in the insurance broker part of the business, its all about actuaries, etc., (though they do get medical advisory services from the non-profit in terms of paying out claims and arranging for chamber rides, etc.) The brokers really don't care about your "travel advisory" unless its specifically covered in your policy, and OBTW it would benefit them financially to sell you a second -- and in light of H1N1 equally worthless? -- "trip cancellation policy".

John_B (DAN member/DAN insured)

Thanks, John, that was a good explanation of the DAN dichotomy as I understand it. In my opinion, the association is deceptive, and the fact that DAN insurance is a separate for-profit entity should be made clearer.

What would DAN's loss be if they switched the coverage to a later date or gave you a raincheck. I can't see them losing anything or any loophole you can exploit.

I completely understand that the two entities are separate. However, DAN chose to ally itself with this entity, and to advertise and sell this to its members. It can also choose to inform the carrier to include proper coverage in order for this relationship to continue.

By contacting DAN, and voicing your concern, this can help make DAN understand the importance of assuring that we are covered in such a circumstance in the future.

DAN is a great organization, especially now that they mostly got rid of their dictator who was scamming significantly. Such happens all too often with worthy organizations: one or more founders will create a self serving & abusive position. It was damned expensive to buy him out I think, and the exorcism may still be incomplete. You can't do any better for the type of organization tho.

DAN also provides the best in dive insurance for most, I think. It is provided from a contractor tho so consumer beware nonetheless.

I'm not aware of DAN providing any other insurance of good value tho. Some suggested that since they provided such good dive insurance, why don't they add life, disability, trip, etc - but those coverages seem to be very poor in comparisons. We tried a DAN forum for a while here, and I once posted a thread there titled something like "Is your trip insurance really this bad?!" with comparisons of rates and coverages. Never got a reply, from anyone I don't think. I haven't updated that study, but I doubt it got any better.

With this situation tho, I doubt that any competitively priced policies were providing much if anything. The advisory was not very strong, nothing like "hurricane imminent" in which all would be at grave risk. It was a serious threat to consider but never developed into the extreme risk we feared. Glad you were able to make your changes without significant losses.

I think I still find my best buys in trip insurance at Travel Safe: Buy Travel Insurance & Compare Travel Insurance Plans | TravelSafe and I always buy for international trips for various reasons well before any real risks develop, actually right away - within 15 days of initial trip plan deposit or expense so pre-existing charges will be covered, and it's good peace of mind IMO. Many don't think so and that's fine until a need arises, then some whine that they need help - but it's insure or self-insure, live with the choice.

Travel Safe does have an exclusion for epidemics and pandemics which is disappointing, but common among US providers. Some discussions on another thread gave me the impression that Canada and Japan have better policies for example, but then they might cost more - don't know. With airlines charging $150 for changes now (I got hit with one of those on my March trip ), I have now started adding "cancel for any reason" at 20% more cost. This does not cover my needs if I go, then get sick from an epidemic, but it does allow me ease of canceling if I see a need myself.

ScubaDadMiami is an Instructor tho, so I guess you knew all this already...?

ScubaSarus:

What would DAN's loss be if they switched the coverage to a later date or gave you a raincheck. I can't see them losing anything or any loophole you can exploit.

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This is akin to asking a casino to not take your chips after a losing spin of the roulette wheel. They are in the business of collecting your losing bets. The fact that you promise to place the returned wager down on the table again does not change anything, because it may turn out to be a winner the second time. They need to collect the losing bets if they are to be expected to pay off the winning bets. DAN insurance is not an altruistic enterprise, it is in business to make a profit.

If I were in their position I wouldn't look too kindly on someone wanting insurance payment because there was a 0.0001% chance they might get pig flu.

Although I understand your position, I think DAN's is valid and they are doing you a favor by moving your coverage.

You have to draw the line somewhere with what constitutes a "trip interruption", otherwise they'd be paying out for just any old thing.

If a hurricane came in and wiped out the resort....if major storms stopped the flights....if a natural disaster like an earthquake occurred....if you had a major accident with serious injuries....or an illness and your doctor told you in writing that you can't travel....these would all be valid "trip interruptions"....and many more I'm sure.

Trying to collect just because you don't feel safe in going...like this swine flu thing....or maybe collecting on a trip to Columbia because the guerrillas are more active this week....well, that's really not an "interruption", it's you making the call.

And they told you it was an "advisory", not a "prohibition"....so it's your call. If it had been a "travel prohibition" I'm sure they would have paid.

Vladimir said "This is akin to asking a casino to not take your chips after a losing spin of the roulette wheel. '

Hes not asking for them to refund the price of the trip is he? He just wants to apply the trip insurance to a later date. Thats not a losing bet. He just wants a rain check.

If I put my chips down on a craps table, I would expect to be able to remove the chips before the dice have been rolled.

Now if he had 2 trips already planned and wanted to cover both by applying the insurance to the first trip and then when it doesn't get canceled move it to his other trip, that would be like removing the chips after his gamble lost so he can bet again.

Or if he didn't book another trip then I can see him in a no lose situation were he just wants his money back. But a raincheck to be used in 3 months would take care of that.

The stories I got from my travel soccer team of staying in hotels were they hear flushing toilets all night, make me avoid Mexico altogether.