TO OUR VALUED D.E.P.P. MEMBERS
As we have been indicating to you the past few months, the changing trends
and demographics in the dive industry have affected the results of the D.E.P.P.
Program. The average claim cost has gone up noticeably, the number of enrollments
has not increased at the same rate as in previous years, and divers are becoming
more selective in the items they wish to insure. The economic downturn has caused
a reduction in recreational diving, and the TSA regulations have made security of
dive and camera equipment on airlines extremely tenuous.
Underwriters first solution to these situations is always to increase the rates.
We have successfully argued that a rate increase penalizes all members, and unfairly
places the burden on those customers that have not incurred losses. However,
certain changes had to be made, and the following will become effective 1st
September, 2010.
A deductible of ten percent (10%) of the claim will be implemented on all
non-flood claims. The deductible applicable to flood will be increased to twenty
percent (20%) of the loss amount, up from the current deductible of 10%. Any
airline loss will now be limited to a maximum of USD $1,000 per trip. As previously
indicated, additional information on claims will also be required.
Finally, schedules of equipment including high-valued items, such as
rebreathers and certain photographic equipment, may be subject to added
underwriting criteria. If you wish to add such items to your schedule, please request
such additions at least two (2) weeks prior to taking a dive trip, so we have time to
complete any additional underwriting prerequisites required by our carrier.
We appreciate your business and your understanding as we take these steps
to improve the overall D.E.P.P. results. Hopefully, by avoiding an across-the-board
rate increase, we have maintained our competitive position in the marketplace and
still have taken the necessary steps to continue the viability of the program. Thank
you.