"There's a Kind of Protection Called Thinking You're Protected" — Does Your Dive Shop Actually Carry Legitimate Dive Insurance?

Many people chose to go scuba diving over the Dragon Boat Festival long weekend to unwind from the stress that's been building up lately. But does the shop or instructor you're booking with actually carry the legally required insurance for water recreation activities? Are you truly covered? Please be careful — don't get taken for a ride. This is a long read, but it's critically important for the safety and protection of every diver out there. Feel free to share.

There's a Kind of Protection Called Thinking You're Protected

Back in August of last year, it was confirmed that all dive instructors could finally purchase the water recreation liability insurance that operators are legally required to carry for their guests. Nearly a year has passed since then — and just when you, as a passionate diver, might have stopped worrying about being uninsured, I'm sorry to have to tell you this: there is a kind of protection called thinking you're protected, when in reality it's nothing but an illusion. In a recent conversation with someone in the insurance industry, I learned that a significant number of dive instructors have been buying policies and then simply keeping the certificate on hand for inspection by the relevant authorities — without ever actually registering the names of their guests with the insurance company. After some time, they exploit loopholes in the policy terms and tell the insurer they never made any claims, demanding cancellation and a full refund — even though they were actively operating all along. And after getting that refund, they still hold on to the now-void policy document, which they continue to use to deceive consumers.

Put simply, this is a three-way deception practised by some dive instructors.

1. Deceiving government authorities by claiming they are legally insured — when the policy has long since been cancelled and refunded.
2. Deceiving the insurance company by claiming the policy was never used, so the cost per insured person shouldn't apply, and demanding a full refund.
3. Most seriously: deceiving consumers into believing their diving activities are legally covered by insurance — and in some cases, the instructor may even be collecting an insurance fee from you while never actually taking out a policy on your behalf, just to pocket the premium they should rightfully be paying.

You Might Ask: Does It Really Matter If There's No Insurance?

In the simplest terms: if something goes wrong and your instructor hasn't insured you, a court ruling would typically hold them personally liable for at least NT$2.5 million — the minimum coverage amount under the policy. And civil judgments go further than that, factoring in your social circumstances, income, and other considerations, meaning the final figure could be far higher than NT$2.5 million.

An instructor who won't even spend NT$28,500 a year on a policy — do you really think they'll be able to cover a payout like that out of their own pocket? I can say with confidence to everyone reading this: more than half of dive instructors probably don't have the means to come up with that kind of money. What you'd end up with is a situation where they shrug and say, "Go ahead and report me — I've got no money, so what are you going to do?"

How to Make Sure Your Dive Shop Has Legitimate Insurance

So, once again, here are a few reminders for all diving enthusiasts:

1. Confirm that the dive shop or instructor you're booking with has legally obtained water recreation liability insurance. Before you go, ask them for their policy number and verify with the underwriting insurer that the policy is still active.
2. Before any dive activity, make sure you have personally signed your enrollment as an insured party with the shop or instructor, and that you have seen proof that they have registered you with the insurance company.
3. For your own safety and protection, always choose a shop or instructor that is legally and properly insured.
   If any shop or instructor tells you they still can't get insurance, remember — that is entirely a lie. Fubon Insurance currently underwrites water recreation liability insurance for corporate scuba diving shops. Wanwan Union (旺旺友聯) is willing to underwrite water recreation liability insurance for both corporate shops and individual instructors (freelance instructors) for freediving and scuba diving. So unless there is a specific case involving a poor track record, there is absolutely no reason anyone cannot obtain coverage.
4. A shop or instructor who deceives government authorities, deceives the insurance company, and deceives you about your insurance coverage — if they also deceive you in any other part of your diving transaction, don't be surprised. That's just who they are.

One final word to all operators — both corporate shops and individual instructors. Social trust takes time to build. Please, all of you, abide by the law and the regulations, and legally insure the guests who place their trust in you — giving them the protection they are entitled to by law. Don't let the profession of dive instructor end up with a reputation in society for being dishonest, untrustworthy, and leaving divers unprotected. And finally, as always — dive happy, and come home safe. Taiwan's ocean is beautiful. As citizens of an island nation surrounded by the sea, we should embrace and cherish our ocean.

Header image credit: Photo by Anurag Harishchandrakar on Unsplash

Related Links

1. Ryan's Personal Facebook
2. Fubon Insurance – Marine Activity Insurance
3. Non-Life Insurance Association of the R.O.C. – Marine Activity Insurance Zone
4. Online Insurance Adds Marine Activity Coverage — Daily Premium Starting from Just NT$75

Further Reading