Page 18 Page 26 Page 28 Page 30 International Travel Insurance Journal ISSUE 47 • DECEMBER 2004 ESSENTIAL READING FOR TRAVEL INSURANCE INDUSTRY PROFESSIONALS Canadian travel hits record high UK liability In an encouraging sign for travel health insurers, car travellers staying overnight. 2003, when Canada was just coming out of its Canadian international travel reached record levels As for travel into Canada, the news was uniformly frightening SARS epidemic, were among the judgement causes in September after languishing in the doldrums for good after many months of depressing data. Japanese, the South Koreans and the mainland several months. Milan Korcok reports According to the Statistics Canada report, an Chinese – who increased their numbers 76 per concern estimated 3.3 million foreign visitors arrived in cent, 56 per cent and 40 per cent respectively. The Coupled with the continuing rise in the value of the Canada in September 2004, up 8.5 per cent over only negatives in inbound travel for September A recent judgement, delivered by the House of Canadian dollar against the US dollar, insurers August. Among them were 2.9 million US 2004 over 2003 were among Germans, Lords in the UK (Chester v Afsharhas), has given servicing the large snowbird Australians, the Dutch, and doctors and their employers – such as insurers and market are optimistic that the the Swiss. assistance companies – reason to rethink their forthcoming season may also see Though the currency practice. records broken in the numbers of differential between Canadian The case revolves around a patient’s claim for retirees heading to their winter and US dollars is always a damages against a surgeon for an operation that homes in the southern US. critical factor in cross-border went wrong. The surgeon’s defence comes under According to the Conference travel, it is particularly acute ‘causation’: simply, that the damage sustained by the Board of Canada, there are for snowbirds, who can spend patient was a common risk for the type of surgery between 400,000 and 500,000 up to six months in the US performed and not a mistake or act of negligence Canadians – mostly seniors – who each year. Many of them have on behalf of the surgeon. spend at least 30 consecutive days homes, condominiums or In a ground-breaking decision, the Law Lords in the US sunbelt – Florida, Texas, mobile homes they maintain essentially decided that ‘the relevant rule is the duty Arizona and California – each in the sunbelt, and the dollar’s of the doctor to warn’. Taken to its extreme, this winter. buying power over a six- means that there is duty to warn about every and According to recent government month stretch in terms of any danger that might be associated with any medical statistics, Canadian residents made taxes, fuel, maintenance, procedure. Taken further, although somewhat almost 3.5 million trips abroad in groceries, clothing, ludicrous, it would appear that failure to warn a September 2004, 4.3 per cent restaurants, and golfing fees patient who is being repatriated that travelling in an more than in the previous month, makes a big difference to their aircraft could cause them to catch a cold or another and the first increase since April household budgets. infection via the air conditioning system or even 2004. That 3.5 million is also 4.7 Analysts note that three years exposure to other passengers, could be held against per cent more than in September ago, when the Canadian the doctor/assistance company/insurer. But it doesn’t 2003. dollar was worth about 62 US stop there. It Of this September total, 499,000 cents, snowbirds were taking would appear from trips were to countries other than the US, up 10.8 residents, up 9.3 per cent over August. Most of that fewer trips into the US and their stays were shorter. the judgement that per cent from the previous month and an all-time gain was due to same-day car travel, which Now that the Canadian dollar is edging toward 80 even if you were high. That is 15.2 per cent higher than September rebounded from a record low in August. Overnight US cents, their stays are expected to be longer and to warn your 2003. travel by Americans into Canada rose by a more that is good news for travel health insurers, who patient or client of At the same time, travel to the US increased 3.3 modest 1.6 per cent. can expect to sell longer-term contracts. these risks, you per cent as nearly three million Canadians headed In addition, about 356,000 travellers from countries Most Canadian out-of-country travel health can still be held south in September 2004. Same-day car travel – in other than the US visited Canada in September insurance plans are priced according to the age of liable if it can be and out of the US in one day – went up 4.3 per 2004, up 2.8 per cent in August and 31.4 per cent the traveller, the traveller’s general health status, proven that they cent in September over August, but there was a 6.7 more than September 2003. The most robust and the number of days the traveller expects to be didn’t really per cent deficit over that same period in Canadian inbound travel increases in September 2004 over out of the country. understand the risks about which you told them: the definition of which is ‘informed consent’. Clearly, all parties involved within the travel Travel agents bully buyers insurance industry in the UK must review and ensure their procedures are modified to cope with Sainsbury’s Bank in the UK says that some travel insurance from travel agents over Michael Liddell, Travel Insurance this ruling. The ruling is so wide, though, that it is agents are ‘bullying’ travellers into buying the agent’s the past 12 months said they Manager at Sainsbury’s Bank, said: difficult to see how anyone could completely cover own insurance and other agents are giving were told they could not book “Our research findings are disturbing themselves for all the possibilities. misleading information about insurance. According their holidays unless they took because they show that some travel Common sense would seem to show that the to Sainsbury’s, people should ‘watch out for out the cover being offered by their agents. agents are either intentionally or unintentionally judgement could or will quickly become unscrupulous travel agents which use underhanded The bank’s research also, worryingly, showed that misleading customers when selling insurance and, in unworkable. However, that will require a further and misleading tactics to pressurise people into about 15 per cent of those who have purchased cover some cases, using pressure tactics to help close the deal.” judgement or clarification by the courts and, in the buying their travel insurance policies’. from travel agents this year said they were not asked The bank advises people to stand their ground and meantime, doctors, hospitals, assistance companies, The bank carried out a survey of 1,000 adults, asking about pre-existing medical conditions, and a similar not be bullied. If a travel agent insists you purchase insurers et al, may find themselves in the middle of questions about travel insurance. The survey showed: number said their travel agents did not explain what its insurance policy before it can sell you a holiday, a shooting gallery as far as liability claims are six per cent of those who claimed to have bought their policies covered. find another travel agent, they say! concerned. 2 NEWS Automatic travel Mickey Mouse pulls in the punters insurance slammed Despite Florida’s hurricanes and protracted, and Florida) was primarily driven by higher theme divisive negotiations with theme park attendance, hotel occupancy and guest ITIJITIJ The Trainline, an Internet park workers, Walt Disney Co., spending. International Travel Insurance Journal booking service in the UK, finished its fiscal fourth quarter In addition: “Higher visitation at Walt Disney World has come under scrutiny with a buoyant flourish, surging from both domestic and international tourists as from the Rail Passengers past analysts’ predictions to well as Florida residents reflected the continued WHAT’S IN Council (RPC) for post a 24 per cent profit success of SPACE, Mickey’s Philharmagic and automatically charging increase. By Milan Korcok Disney Pop Century Resort and improvements in customers £1 per trip for travel and tourism,” said Disney’s financial report. THIS ISSUE? travel insurance. In what Disney CEO Michael It also noted that increased guest spending was The government-funded Eisner called ‘An outstanding year driven by higher ticket price increases and less RPC has written to Trainline for The Walt Disney Company’, discounting. to ask them to explain why the world’s number two For the fourth quarter, increased guest spending at REGULARS the charge is by default, entertainment company reported Walt Disney World in Orlando mostly offset instead of being an option for higher fourth quarter earnings decreased attendance due to the temporary park News 1 passengers to choose – as it and record cash flow for the fiscal closures during Florida’s August and September Grapevine 6 should be an ‘opt in’ rather year ended 30 September 2004. hurricanes. than an ‘opt out’ addition. The California-based company Besides the hurricanes, Disney also dodged a bullet Spitzer news 7 Anthony Smith, RPC’s claimed net income of $516 when Disney World’s unionised workers narrowly Company brief 8 National Director, said: “It’s million or 25 cents a share, up approved labour contracts that had been embroiled Insurance matters 9 simply not right.