PADI getting sued over Insurance Program

[Zippsy]

And who is going to start work on the DM / Instructor's insurance problem? It pisses me off that their highly pushed policy includes a rather large kickback to themselves. I use the word "kickback" even though what they do may be legal, it sure does siddle up to unethical and rub it's preofessionals the wrong way. PADI take something like 25% of of the premium. Don't they get enough from us in annual dues?

 

[Scubaman7596]

Don't they get enough from us in annual dues?

Which just went up BTW.

 

[Scubaman7596]

Once again anyone wanting the complete PDF of Ricks Public response. Please PM me with Your Full name and email address.

 

[mike_s]

There could possibly be an interesting side effect that relates to the timing of this lawsuit.

If PADI is unsuccessful in getting an early dismissal of this suit, we may find that they are unable to offer dive store general liability and property insurance in July of next year. If there is any possibility that this insurance arrangement is a violation of insurance laws, I can't imagine that they would accept another years renewal.

Oh...and if we assume the premise that this type of structure is illegal for general liability and property insurance, and that such a "blanket policy" approach is one that PADI has found to be successful for them; when do we possibly see a similar lawsuit with regard to PADI professional insurance?

Just letting my mind wander.....

Seems this could (or does) affect about every PADI dive shop out there.


This could very easily turn into a "Class Action Lawsuit".



Or mass defection from being a PADI shop to other Agencies... (NAUI, SDI/TDI, etc). big time

 

[ReefHound]

If anyone knows where Lesser might have published the response he gave here, complete with the attachments he referenced, please provide us with a link, Thanks.

Phil Ellis
DiveSports.com

Ditto. I've sent my pm request but a link would make things much easier on everyone - especially on those who have offered to email it upon request.

 

[ReefHound]

This could very easily turn into a "Class Action Lawsuit".

I'm not a lawyer but isn't that what PADI would seek in order to be able to settle this issue once and for all? Rather than defend against it over and over.

 

[Scubaman7596]

Seems this could (or does) affect about every PADI dive shop out there.


This could very easily turn into a "Class Action Lawsuit".



Or mass defection from being a PADI shop to other Agencies... (NAUI, SDI/TDI, etc). big time

It is a class action Lawsuit

 

[Scubaman7596]

Ditto. I've sent my pm request but a link would make things much easier on everyone - especially on those who have offered to email it upon request.

We are working on it. right now PM'ing then emailing is all we have..

 

[ReefHound]

I've read the court documents filed in the suit. If the allegations are true, PADI is in a world of hurt, and I'm glad I haven't used V&B in a number of years, else I'd be pissed. This could be big enough to bring PADI down, again if the allegations are true.

What do you and others mean by "bring PADI down"? Do you mean the insurance division of their business or their entire organization?

Are there actual damages that would amount to a financial crippling or would that depend on punitive damages?

If the plaintiff alleges that PADI is acting as an unlicensed insurer, does it seek an injunction against PADI providing insurance? Have state insurance departments and attorney generals been involved?

 

[Wookie]

What do you and others mean by "bring PADI down"? Do you mean the insurance division of their business or their entire organization?

Are there actual damages that would amount to a financial crippling or would that depend on punitive damages?

If the plaintiff alleges that PADI is acting as an unlicensed insurer, does it seek an injunction against PADI providing insurance? Have state insurance departments and attorney generals been involved?

Todd, as we've seen with other lawsuits, the cost to defend is astronomical, then if PADI is judged against, it might break them. As with anything in the SCUBA industry, PADI may be the 800 lb. gorilla, but their pockets aren't bottomless.