International Student Placements – providing an overview of risk management

and insurance implications

Nicky Routh

Insurance Officer

University of Surrey

Outline

• Yes, it’s a test!

• How the University of Surrey manages its insurance risks for student placements

• Examining the insurance and risk management exposures facing HEI’s

• When is ‘Personal Accident and Travel’ health insurance?

Health & Safety Guidance

This guidance describes what is required in approving placements, preparing students for placement and supporting the students in terms of their health and safety on placement both in the UK and overseas. The main difference between this guidance and the 1997 version that it replaces is that this encourages a risk-based approach.

Yes, it’s a test!

Just a little test of your knowledge on liability and risk management issues relating to international student placements.

Ready?

Student Placements

What are the Insurance Risks• Injury / Ill health

• The student could be injured or suffer ill health as a result of working at a placement provider.

• The student could be injured or suffer ill health while on placement but not as a result of working at the placement provider.

• The actions of the student could cause injury or ill health to others, damage to property, or loss of income to a business.

• Legal liability,

• Liability under health and safety legislation Health and Safety at Work Act 1974, Corporate Manslaughter or Gross Negligence Manslaughter

• For placements outside the UK, the liabilities on each party will be a matter for the enforcing authorities in the country where the placement occurs.

The student is directed in focusing on where they are going, what they are doing and what is required of them.

The pressures that will be affecting them are:

1.Often the first extended period of time during which students are away from the family, Faculty or University environment

2.Being in a new country and a new environment

3.Learning requirements

4.Local influence

5.The unexpected

Insurance for Placements Abroad

What we do

1. We have an outstanding student exchange programme

a. Compulsory attendance to pre departure sessions

b. Insurance & H&S talks, on-line risk assessments, robust information, close liaison with all the faculties

c. Guidance handbooks

d. K.I.S.S

2. Don’t drink the water …… most problems encountered abroad can be avoided if proper precautionary measures were taken in conjunction with careful planning.

3. Consequences

4. Emergency numbers

What Insurance do we provide?

Public Liability Insurance during the course of an academic placement is covered by host institution under a reciprocal agreement

Public Liability Insurance covered during the course of the work placement for where the University is negligent

Important question to ask ….. “Will your insurance cover liability for injuries or sickness attributable to duties with their organisation?”

Our insurers provide cover, under the personal liability extension, for injury caused TO students in the work place, where a host or organiser has caused injury and has NO liability insurance but will not accept vicarious liability of employer. Each claim would be considered on a case by case basis.

Personal Accident & Travel – comprehensive insurance cover whilst on University business

What PA Travel insurance does the University of Surrey have?

Personal Accident & Travel – comprehensive insurance covers undergraduates whilst on University business

Medical & Emergency Expenses Unlimited

Assistance & Rescue Unlimited

Legal Expenses £50,000

Personal Liability £5,000,000 (work exclusion)

Personal Property £5,000

Money £5,000

Cancellation, curtailment, etc. £10,000

Repatriation £10,000

Erasmus Mundus insurance requirements

Candidates to receive the obligatory insurance coverage by the consortium/partnership are: Action 1 - EMMC student scholarship holders Action 1 - EMJD doctoral candidates with a stipend All Action 2 grant recipients

Candidates for whom insurance coverage provided by the consortium/partnership is NOT obligatory are: Action 1 - EMMC scholar scholarship holders Action 1 - EMJD doctoral candidates with an employment contract

There are schemes but they can be expensive - approx. £328.50 per student

Some host institutions have schemes the student can buy into

Examining the insurance and risk management exposures facing HE’s

What are your exposures?

•Sanctioned countries•Kidnap & ransom•Working in labs•Do you have a Student Abroad policy?•Reputation•Staff travelling to check on placement provider and student•Country stability/civil unrest•Extra curricular activities•Healthcare in the host country•Insurance limitations

•Individual student factors•Visa’s•Professional Body Insurance eg Medical Malpractice•Incidental holiday•Human Rights violations•Natural disasters•Pandemics and disease

•For any person traveling to a country with a trade sanction there is extremely limited coverage. •Any expenses incurred within a sanctioned country may not be paid back in the UK.•Must check, before they travel, on the Government website below. •Sanctions implemented by the EU apply to all persons and companies doing business in the EU, and EU nationals and entities doing business outside the EU.•Penalties vary among the member states. In the UK, violations are typically criminal offences. •Unintentional violations may result in civil and criminal penalties. Penalties can be imposed not only on companies, but also on individuals involved in underwriting, administration and claims.

Department for Business, Innovation & Skills - Sanctions, embargoes and restrictions states that

‘Sanctions and embargoes are political trade restrictions put in place against target countries with the aim of maintaining or restoring international peace and security.’ Their guide also explains why and how governments put trade controls in place and detail the different types of sanctions and embargoes.’

For details about specific destinations see Current arms embargoes and restrictions.’ https://www.gov.uk/sanctions-embargoes-and-restrictions

Travel to Sanctioned Countries

Kidnap & Ransom

Be aware of:

•The country risk profile

•Kidnapping is on the rise

•Make sure it is included on the risk assessment

•Speak to your Insurance Officer if in doubt

Incidental Holiday

An 'incidental basis' means that the activity the student is doing is not the specific reason for them going.

•Incidental holiday can be covered under the policy

•The maximum permitted holiday period is 14 days for any trip

•The holiday portion of the trip must not exceed 50% of the travel period.

•If extreme sports are included in the holiday portion of the trip, the student should take out extra insurance independently

•If for any reason the period of holiday exceeds the overall period of study in the designated country, the student must arrange separate insurance

•Insurers are understanding but not that understanding

•Speak to your Insurance Officer if in doubt

Key exclusions under the policy

• Failure to take reasonable precautions to avoid loss (includes non-refundable costs incurred prior to visa applications)

• Travelling against the advice of a medical practitioner

• Disinclination to travel, unless for unforeseen and documented personal or health reasons

• Non-emergency medical costs (e.g. check ups, ongoing prescriptions and vaccinations)

• Third party liability arising from motorised vehicles

• Airline or travel agent insolvency

• Suicide, intentional self injury or use of non-prescribed drugs

• Dental or optical expenses (other than in exceptional circumstances)

• Travel to "disturbed areas" unless given prior approval

• Visits to off-shore facilities (e.g. oil platforms)

• Travel exceeding 15 months in duration

When is PA Travel Insurance Health Insurance?

• It’s not.• Overseas institutions put pressure on student to procure their health

insurance policy• It is worth insisting your policy will provide the cover required (if it does).• They will say that your insurance must comply with the guidelines set out in

the Code of Practice for International Students and, at a minimum, must also include cover for personal effects, mental illness, optical, loss of baggage and other personal effects.

• Their preferred insurance policy meets the University's requirements? Yours should too.

When is PA Travel Health Insurance?What they may insist on in terms of cover• Your insurance provider should have substantial experience in the travel

insurance business, and has a credit rating no lower than: A from Standard and Poors; or B+ from A M Best.

• The insurance commences on the day the student leaves home and begins travel and the insurance applies whilst the student is in transit

• The student is covered by the insurance for trips to and from his or her home country and trips to other countries during the period of study

• The insurer is able to provide emergency cover 24 hours/7 days a week• The ‘sums insured’ must be high enough to cover most situations• No excess• Medical benefits inclusions (prescription costs, treatment etc.)• The insurance covers the cost of emergency travel or repatriation in the

event of serious illness, injury or death• Personal liability in the event of the student causing accidental damage to

property belonging to a third party.• They will also say that it is also desirable, but not mandatory, that the

insurance policy cover mental illness and unforeseen loss of tuition or other fees not recoverable from any other source

Yes, it’s a test again!

• Should an HEI’s own Public Liability Insurance provide cover in respect of the HEI’s own legal liability to its students on placement?

• Should an HEI’s own Public Liability Insurance provide cover in respect of the HEI’s own legal liability to the placement provider?

• Should the placement providers own Public Liability provide cover in respect of its own legal liability?

• In the UK, would you expect a placement provider to cover the student for Employers Liability?

• Outside the UK, would you expect a placement provider to cover the student for the equivalent of Employers Liability and Public Liability?

• Is there standardised Employers Liability / Workman's Compensation abroad? • What is incidental holiday? What are the definitions?• How many sanctioned countries can you list?• Your HEI has organised a third stream income event outside the UK for multinational

attendance. One of the attendants cannot return to his home country (Palestine) as the borders (Egyptian) have closed and an EU country holds him in the airport, with the authorities not allowing him to leave and threatening to send to Tel Aviv. What are your liabilities in this scenario?

Any questions?