Insurance Fraud involving trekking guides and helicopter rescue outfits has made Insurers nervous to extend cover to Mount Everest Climbers. At more than 29,000 feet, Climbing Mt Everest in Nepal is one of the world’s riskiest activities. Purchasing Insurance is not just a good idea for climbers but its absolutely necessary. However, a rash of Insurance fraud involving trekking guides and helicopter rescue outfits has insurers threatening to stop coverage.
The Scam was detailed by The New York Times in their story of Australian trekker Geoffrey Chang who was convinced by his guides that he was suffering from acute mountain sickness (AMS) at Everest’s base camp. The guide pushed for an immediate and costly helicopter evacuation, and Chang dutifully complied only to find out later that he and his Insurance company were taken for a ride. With helicopter evacuations costing as much as $40, 000 each, underwriters controlling 23 travel Insurance brands have threatened to cut off coverage this February if the Nepalese government does not take action against the 17 companies accused of Insurance fraud.

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