Nekton (Bad News)

[Shasta_man]

...but we'll be keeping the dough unless they make us give it back."

 

[Tom725]

I today found out that my insurance claim has been denied and sent to the insurance compainies arbitration department. I have no idea what a arbitratin department does. I am waiting for a call back but it does not look good.

 

[divengolf]

I today found out that my insurance claim has been denied and sent to the insurance compainies arbitration department. I have no idea what a arbitratin department does. I am waiting for a call back but it does not look good.

Their arbitration is just another way for them to say NO. The deck is stacked against you. The only way to get a fair hearing is in an impartial forum. Maybe Small Claims Court.

What company do you have your insurance with? I assume it's a travel insurance policy. Correct?

 

[Tom725]

I bought it through DAN. I am not at home so I do not have the name of the underwriter.

They said that because I used a credit from the year before and did not apply for the insurance until this year when I did the booking I did not qualify. Seems to me if I did not qualify for the insurance they should not have taken my money. I intend to ask for at least a refund of the premium if there was no coverage as soon as I get the official letter.

I understand that these trave insurance companies are having a terible year with the volcano in Europe and the Oil in the Gulf. I also understand that they are not covering any cancelations due to the BP Oil spill.

 

[Hodge Podge]

I work for the insurance industry, unrelated to travel insurance. I was always told that travel insurance is secondary to your homeowners or medical insurance. Most all policies have this in the fine print. If you get time to read the policy in full you will find it does not cover much. My lost luggage, camera equipment, dive equipment are all part of my homeowners policy. The only thing I am not covered for is lost time in travel due to flight cancellations or such. In these cases the airlines rebook you and may pay for hotel and meals if they can't get you to your destination due to changes they created. Before you buy travel insurance check with your homeowners insurance for a rider that can be added to cover your losses when traveling. It will most likely be a lot cheaper and actually cover you.
I have talked to many people that do a lot of travel for business or pleasure and have yet to hear of anyone being paid back with travel insurance. There are just too many exclusions and/or conditions in the fine print to make it worthwhile to buy.
As an added note, many, many, years ago I was in retail and we sold extended warranties. The underwriter sales people told us how much money we could make as added profit due the terms and conditions of the policy that would seldom repay the customer a dime.
I would sincerely like to hear from anyone for which travel insurance worked.

 

[annasea]

<snip>
I would sincerely like to hear from anyone for which travel insurance worked.

Two back-to-back examples...

1. I did a Nekton liveaboard a couple of years ago and due to traveling during hurricane season, I bought travel insurance just in case. The boat portion was fine, but upon returning to Florida and attempting an ill-fated shore dive at LBTS, my fins were swept away. Once home, I filed a claim, obtained a replacement quote from a local dive shop (for significantly more than what I paid for the Jets and spring straps in the States) and received reimbursement within a few weeks.

2. Last year I had a dive trip scheduled for Mexico. About a week before departure, the H1N1 hysteria kicked into high gear. Less than 24 hours before Canada's travel advisory became official, I bought travel insurance. (Even though Air Canada had cancelled all flights to Mexico, I could have still gone as my flight was booked with Continental.) Once my departure date passed, I filed a claim for my airfare and hotel deposit. A few weeks later, I received full reimbursement from the insurance company.

 

[DaveScuba]

I today found out that my insurance claim has been denied and sent to the insurance compainies arbitration department. I have no idea what a arbitratin department does. I am waiting for a call back but it does not look good.

Normally arbitration has to do with another insurance company. Its not exactly clear to me why they would refer to claim to arbitration without offically denying it.

 

[mike_s]

Normally arbitration has to do with another insurance company. Its not exactly clear to me why they would refer to claim to arbitration without offically denying it.

arbitration is pretty typical now days....

I'm betting that if you read the policy that their first step of outside resolution in a claim dispute is to agree to use an arbitrator. It's MUCH cheaper for them to use an arbitrator than to use lawyers, etc. So they do it that way based on costs.

the issue is whether the arbitration in the contract is considered binding or not. If it's binding to both parties, then you are stuck with whatever the arbitrator decides, even if it's not what you want. If it's binding only to them, then they have to do what the arbitrator decides, but you are left to agree to that or not. If you choose not to agree, then you can take further legal steps against the insurance company.

 

[bcaderunr]

Cheaper and easier for you as well, but still no walk in the park. If an arbitration clause is in your contract, you must go that route. And the decision of the Arbitration Panel or Arbitrator is final. It cannot be reviewed or overturned by the legal system unless there has been gross misconduct or obvious disregard of the law on the part of the Arbitrator(s).

Check with a lawyer in any case. It's most likely the insurance company will be represented by counsel at the Arbitration Hearing. An Arbitration is basically a legal hearing (just like a court trial) but with simpler rules (especially for evidence) and a less formal structure. Witnesses are sworn in and cross-examined, evidence is introduced and you get the opportunity to tell your side. A lot depends upon what's on paper and what you've signed. You'll need to prepare for it and most likely will need legal representation unless you choose to do all the work yourself.

Good luck!

 

[Doriadiver11]

Positive cash flow is key. How many times does a boat go out at less than full capacity ? There is the profitable, break even and lose money capacity. Who really knows exactly how, where and how much the money flowed ?

Who determines what is an adequate profit margin or what is considered a NEEDED increase in price ?

How much money do you have to layout upfront and how long to recover it ? Recover it based on a 3-5 year prediction of cash flow and steady business ? Who predicted the recent economy crash ?

Running a business is not as easy as it sounds.

First of all, let me say that I've known Nekton's owner personally for nearly 30 years, and there are very few people with his integrity. He's always been an impeccably honest, kind, and generous family man, and I'd trust him with my own kids. As far as what challenges there are to running the Nekton business, they are numerous and unique. He started this business from nothing but a vision, and designed these ships himself (together with his early partner Pete). With great admiration and a touch of envy, I watched him build this business from nothing but an idea. The risks are huge, and the capital investment is enormous. The operating and maintenance costs are as unpredictable as the weather and sea-conditions that they encounter. But even more difficult, has been the general economics of ALL "hospitality" businesses since 9/11 2001. Nekton's business model is like the hotel business on sterioids. THey are just as dependent upon occupancy rate, and the discretionary spending, but with NO business traveler as a source of income. They are solely dependent upon TOURISM, and with all of the additional risks that go along with conducting a diving operation, sometimes conducted in foreign waters who impose their own onerous regulations upon the operator. Belize for example, requires hiring only Belizean crew; who once aboard act like a bunch of tenured union school teachers who know they can't be fired, even if they just work 3 hours per day.

Unfortunately, Nekton has had to struggle with these challenges for many years, going as far back as the virtual stoppage of tourism for many months following the attack on the World Trade Center. These economic dynamics are ALL beyond the control of Nekton's management, and in fact, they did a remarkable job of sustaining the business model as long as they did after 9-11. This financial melt-down which started in 2008, and which is being exacerbated by the FDR-style economic INCOMPETENCE of this current president and his administration, is a situation that any knowledgeable business person can see is unmanageable. I currently run a manufacturing company with 400 employees and I for one think that the economy is no where near to starting any kind of recovery. This will be a sustained, and protracted contraction of American economic prosperity the likes of which hasn't been experienced since the 1930's. Just wait till the health care TAX kicks in...and you will see unemployment spike up another notch. Lower employment = Fewer Tourists. Nekton management did a spectacular job keeping the company afloat for the past 9 years in spite of these challenges, but seeing the writing on the wall now, the only good business decision was to shut down. When JD writes "It is with heavy heart and deep regret that we cease operations.."... you can be sure that this was probably one of the most painful decisions he's made in his life.

So JD, to you my friend, I send you and your lovely family my kindest and best wishes, and my sincerest gratitude for the wonderful experiences and memories I enjoyed aboard the Pilot, which would never have happened had you not had the cojones and entrepreneurial spirit to take on such a risk. You have my deepest respect.