Insurance fraud – Adventure Sports https://blogs.dw.com/adventuresports Mountaineering, climbing, expeditions, adventures Wed, 20 Feb 2019 13:29:24 +0000 en-GB hourly 1 New guidelines for helicopter rescue on Nepal’s mountains https://blogs.dw.com/adventuresports/new-guideline-for-helicopter-rescue-on-nepals-mountains/ Mon, 03 Sep 2018 14:36:00 +0000 http://blogs.dw.com/adventuresports/?p=34783

Rescue flight on Everest

A committee is to get to the bottom of it. Since Friday, new guidelines for helicopter rescue have been in force in Nepal, with which the government wants to prevent insurance fraud with “fake rescue flights” in the future. A “Tourist Search and Rescue Committee” will monitor all rescue operations. The committee includes representatives of the ministries of home and of health as well as of the Nepal Mountaineering Association (NMA), the Himalayan Rescue Association (HRA), the Civil Aviation Authority of Nepal (CAAN) and the tourist police. Helicopter companies, expedition and trekking agencies, hospitals and insurance companies are now obliged to provide all details of rescue flights and medical care as well as insurance invoices in a timely manner so that the committee can review them. In the event of irregularities, the committee is also responsible for punishing the black sheeps in the sector.

No more intermediaries

The government dropped its original plan to place the rescue operations completely in the hands of a police unit in the Ministry of Tourism. Now the expedition and trekking agencies have to take on their responsibility. They are to arrange everything necessary to rescue their clients in case of emergency. Only the patient and a helper or guide will be allowed to be flown by the rescue helicopter. Hospitals are to provide the agency concerned with a cost estimate for the treatment of the client. Intermediaries between insurance companies and tourism agencies are completely banned from the rescue service.

CAAN to cap costs for rescue flights

Return flight by helicopter

After last spring’s climbing season, massive insurance fraud with “fake rescue flights” had been uncovered. Guides are said to have urged climbers and trekking tourists even when they felt unwell to get on a rescue helicopter and be flown back to Kathmandu for treatment. These flights were then invoiced to the insurance companies – often at a completely overpriced rate. A commission of inquiry of the Nepalese Ministry of Tourism named eleven companies from the helicopter and trekking industry as well as four hospitals in Kathmandu that allegedly cheated insurance companies. But this is probably only the tip of the iceberg.

The commission found out that some mountain guides had also mixed baking soda into the food so that their clients got diarrhoea and were flown out by rescue helicopters. In addition, helicopters were packed with allegedly sick climbers and trekking tourists, afterwards the insurance companies should pay for several individual flights instead of one. According to the government more than 1,300 helicopter rescue flights were reported in the first five months of the year alone.

International insurance companies had threatened not to cover any more rescue flights in Nepal unless the government intervened. They demanded to cap the cost: to 4,000 dollars per flight. The Civil Aviation Authority of Nepal is now to set a cost ceiling, depending on flight hours, distance and rescue altitude.

Animal with four back legs

But is a committee really the smartest solution to get a grip on the problem? I am skeptical. Committees usually do not tend to work quickly and effectively – or as the British author John le Carré  wrote (in his spy novel “Tinker Tailor Soldier Spy”): “A committee is an animal with four back legs.”

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Fight against fake rescue flights in Nepal https://blogs.dw.com/adventuresports/fight-against-fake-rescue-flights-in-nepal/ Sun, 26 Aug 2018 16:22:10 +0000 http://blogs.dw.com/adventuresports/?p=34723

Rescue helicopter at Everest Base Camp

The air is getting thinner for those in Nepal who feather their beds with fake rescue flights. According to the Kathmandu-based newspaper “The Himalayan Times”, international insurance companies have set an ultimatum until 1 September to put an end to these illegal activities. Otherwise, they no longer want to cover the costs of helicopter rescue flights. The Nepalese government plans to set up a police unit in the Tourism Ministry that is to manage all rescues.

Not practicable

Lakpa Norbu Sherpa (r.) and Maurizio Folini

Lakpa Norbu Sherpa, who has been coordinating rescue on Mount Everest since 2003 as base camp manager of the Himalayan Rescue Association (HRA), is sceptical. “Police officers are no specialists”, tells me the 37-year-old, who was trained as a helicopter rescuer in Switzerland in 2012. Similar comments are made by Maurizio Folini: “The solution is not practicable. The police have no idea how to save people in the mountains.” The 53-year-old helicopter pilot from Italy is a pioneer for rescue flights on the eight-thousanders in Nepal. Since 2011 Folini has been flying regularly on the highest mountains in the world, in 2013 he managed the highest longline helicopter rescue of all time when he brought down a Nepalese climber from 7,800 meter on Everest.

Tip of the iceberg

He repeatedly pointed out that many of the rescue flights declared in Nepal in recent years were in fact none at all, Maurizio says to me: “But as a pilot you have little influence there. Last spring I refused such flights. I only flew when I had real patients on board.” An investigation commission of the Nepalese Ministry of Tourism has meanwhile named eleven companies from the helicopter and trekking industry and four hospitals in Kathmandu that allegedly defrauded insurance companies. But this should only be the tip of the iceberg.

Baking soda mixed into food

Rescue flight on Everest

Mountain tourists are said to have been urged to get on the rescue helicopters even when they were slightly unwell. The Commission even reports of individual cases where local guides mixed baking soda as a laxative into food to provoke diarrhea and then persuaded their clients to return to Kathmandu on a rescue flight. Helicopters have been packed with several sick people, it said. However, the companies cashed it up with the insurance companies as several individual flights of the patients.

Three times higher invoice

Folini points out that most of the fake rescue flights start on the trekking routes, for example in Gorak Shep, the last settlement before Everest Base Camp, or in the Gokyo Valley, a popular trekking destination near the highest mountain on earth. “Trekking tourists or mountaineers are influenced by the agencies,” says Maurizio Folini. “The business is made by the agencies that invoice three times more than the real amount, 12,000 instead of 4,000 dollars per rescue.” According to Maurizio, some hospitals in Kathmandu also have “dirty fingers”. Many of the patients suffering from high altitude sickness who are now flown directly to the capital could just as easily be treated in the clinic in Lhukla, the gateway to the Everest region, he says.

Only half of the helicopters needed

Maurizio in the cockpit

According to the government commission, more than 1,300 helicopter rescues were reported in the first five months of 2018, causing insurance costs of more than 6.5 million dollars. “The biggest business for the helicopter companies is fake rescue,” says Folini. He suggests a kind of “filter” to get a grip on the problem: “We need a checkpoint like we already have in Everest Base Camp with the HRA. A doctor has to confirm that the helicopter transport is really necessary.” Maurizio believes that if the fake rescue flights were to disappear, half of the helicopters would be enough: “That would also be good for tourism in the Everest region. There’s too much flying now. You can hardly hike in the Khumbu without being disturbed by flight noise.”

Grievances also in the Alps

However, Folini warns against seeing the problem only through Western glasses. “Also in the Alps not everything is great,” says Maurizio, referring to prestigious mountains such as Mont Blanc or the Matterhorn, where much more people are climbing than on Everest and where, for example, the faeces problem is unsolved: “On Mont Blanc, the waste from the toilets often ends up on the glacier. And try to climb the Matterhorn without stepping into a pile!” Even in the Alps, not every helicopter flight is a “clean rescue”, says the experienced pilot, who has completed more than 14,000 flight hours since 1993. “Rescue is always business. How can we point a finger at a poor country like Nepal if we can’t solve our own problems at home?”

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