Personal Finance: Don't be a fall guy

A casual attitude to skiing insurance can prove very costly.

ONLY A madman would sit behind the wheel of a car without adequate insurance. Yet, as tens of thousands of UK families prepare to strap on skis during the coming half-term holiday, many of them will do so without a thought for the consequences of an accident.

If so, they should take note of the fact that a huge surge in law suits means courts are now determined that someone should pay for any reckless frolicking in the snow.

British lawyers are very concerned at the way UK skiers head for the winter sun with hardly any basic understanding of rules that Europeans regard as a legally enforceable highway code of the snow. This leaves them vulnerable to criminal prosecution as well as claims for compensation. Furthermore, UK insurers are now encouraging policyholders to sue for loss of earnings, pain and suffering.

Winter sport litigation expert, Bronwen Courtenay-Stamp, of the solicitors Stones, Cann and Hallett, explains: "We all know the Americans are very litigious, but people underestimate the extent to which Europeans have always been quick to sue for skiing accidents. Over the last couple of years we have seen an explosion in claims."

The need for a well designed ski insurance policy is clear, and travellers who simply opt for the policy at the back of a holiday brochure, or worse still opt out altogether, could be making the most expensive mistake of their lives.

David Sterling, of specialist ski insurer Crispian Spiers argues: "Whatever happens, if you have insurance, you have someone on your side. Insurers will support you in very difficult circumstances. But buying the right policy is essential."

A good policy should provide pounds 2m third-party liability cover. However most ski policies will not cover accidents on a mechanical vehicle, such as a snowmobile, so you need to consult a specialist broker for that.

Research also reveals that one in 10 people who go skiing this winter will need medical assistance following an injury, but the same accident can cost widely differing amounts depending on the resort.

Brokers recommend a minimum of pounds 1 million medical cover, but this should not be viewed as some kind of private medical insurance. It is catastrophe cover, designed to provide emergency treatment and to get you home. Any prior medical condition is strictly excluded.

A spokesman for the Insurance Ombudsman warns: "Policyholders should get approval for all medical treatment before it takes place to prevent disputes when they return to this country.

"A doctor in Switzerland might say that a particular form of treatment might possibly be necessary; the insurer could later dispute this."

The Ombudsman relies on doctors on the spot when it comes to arbitrating disputes, but to avoid wrangles keep the insurer informed and get copies of all medical reports.

Another contentious area is the loss of skis or equipment. Although most policies cover skiing equipment, they nearly all spell out the skier's "duty of care". So, if you leave your skis outside a restaurant or bar (extremely common) and they are stolen, the policy will not pay out.

One exception is the contract from ski specialists DCT. A spokesman explains: "The reality is you can't expect skiers to walk into a restaurant wearing their skis. If you claim to be a specialist ski insurer, you have to cover the skis."

David Sterling has his own tip. "Split your skis up when you go in. Put one round one side of the restaurant and one around the other."

Always make sure that your policy covers passes, ski packs and lessons which you might be unable to use following an injury, but beware, as some policies set low daily limits, which would not cover all your loss.

Similarly opt for a contract which compensates for piste closure following poor weather conditions.

Many skiers are opting for annual travel policies, which allow them a summer break and typically provide two weeks of winter sports cover. Options offers an annual Europe plan for pounds 38, with a family policy from TravelPlan Direct starting at pounds 66.50. Frequent skier policies provide up to four weeks' annual ski cover, starting at around pounds 50, but are more costly for those flying to the US.

Don't Get Piste Off

AS THE glistening sea of virgin snow beckons, not many people stop to think that most policies exclude off-piste skiing. That detail is often buried in the small print.

Even one reputable high-street retailer has produced a leaflet for its winter sports insurance policy showing skiers skiing off-piste - although off-piste skiing is excluded by the policy, unless the policyholder is accompanied by a qualified instructor or a guide.

And the page which lists activities that are not covered depicts skiers off piste.

A spokesman for the company says that there was no intention to deliberately mislead, and that the wording of the brochure was perfectly clear.

The pictures were merely chosen to reflect winter sports activities, the spokesman added.