9 December 2002
Playing insurance is a complicated subject and one that, for understandable reasons, is not as high as it could be on most players’ list of priorities. We believe that it is an important issue for the game and encourage clubs to make efforts to ensure that players understand what is involved.

This series of three articles features ‘frequently asked questions’ on the key aspects of playing insurance.

Who needs insurance and why?
Rugby is a physical contact sport and as such brings the risk, albeit very slight, of very serious injury. Over the past few years there have been, on average, three very serious injuries per year resulting in maximum benefits being paid out. It is compulsory for all teams of all member clubs to have adequate insurance, in this case the RFU’s Accidental Death and Permanent Total Disability (ADPTD) policy.

What is the basic cover and what are its limitations?
The ADPTD scheme provides insurance cover for death or permanent total disability as a result of an accident whilst playing rugby. The maximum benefit for the latter is £500,000. This is a death and permanent total disability policy and the benefits in respect of the latter are for catastrophic injury only. For this reason the RFU has asked insurers to make available additional insurances. Marsh have introduced the Sports Injury for Amateurs short-term injury, and the PTD Top Up policies for individual players.

Should Players take out a PTD Top Up policy?
A PTD Top Up policy is available to individual players at £8.25 per month. The compulsory ADPTD scheme provides benefits for very serious injury of £500,000 but we believe that a benefit of approximately £1m is the minimum required to assist in the major lifestyle changes required after a very serious injury.

In order to provide this benefit under the compulsory scheme (or under a club voluntary scheme) a premium of several times the current level would be required from each club. This, we believe, is not a realistic proposition and the best approach, therefore, is to make insurance available to the individual. Clubs are urged to encourage their players to seriously consider taking out this cover in addition to that effected by the club and we request that clubs ensure that details of the top up cover is available to all players.

Is death by natural causes covered?
No. Death by natural causes is not covered in the compulsory PTD scheme. The reason for this is that the underlying principle behind the RFU policy is to cover against accidents specifically associated with playing rugby. It is not the intent to provide cover for other risks or to supplement an individual’s private insurance, in this case life cover. However, clubs can purchase Death by Natural Causes cover on a voluntary basis on behalf of their players.

Why has the premium risen so much this year?
The premium has risen significantly this year for two reasons.

Firstly, there has been a substantial increase in the level of cover provided under the policy, from £375,000 to £500,000, in response to the factors outlined above.

Secondly, due to the substantial changes in the insurance market following the September 11th disaster, the liability premiums in the scheme increased very substantially.

When does cover apply?
Cover applies from receipt of the premium and application form at Marsh. Formal acknowledgement from Marsh should reach the club within 30 days. Cover is automatically extended until the 30th September for clubs who were insured last season.

In next month’s article we will provide answers to more detailed questions on the compulsory playing insurance.

If you require further clarification on any aspects of the RFU ADPTD cover, or other forms of cover discussed in this article, please do not hesitate to contact Marsh on 023 8021 6700 or uk.sme@marsh.com .