Thousands of overseas Scots workers' life insurance at risk

Davy Cornock at home in Ferryden. Image: DC Thomson

Thousands of Scots workers may be affected by flawed legislation that could prevent their families from cashing in life insurance policies if they die overseas, The Sunday Post can reveal.

It comes as one of the campaigners who led the fight to introduce the system says the Scottish Government must now take urgent action to fix the loophole.

We reported previously how as many as 1,000 Scots families may have been denied answers over their loved ones’ deaths since a change in the law in 2016.

Despite 5,700 inquests into deaths abroad taking place in England and Wales between 2019 and 2023, not a single one has been carried out in Scotland.

What is the cause of the issue?

Campaigners say confusion over the term “ordinarily resident” to describe where a person spent their time before dying has made it impossible to pass the threshold for an equivalent hearing, known as a Fatal Accident Inquiry, to be held in Scotland.

The requirements for a person to be considered ordinarily resident are not defined in the Inquiries into Fatal Accidents and Sudden Deaths etc. (Scotland) Act.

It means people arranging to have their family members’ remains returned to Scotland are unknowingly locking themselves out of justice available south of the border.

But union officials and industry bosses believe the situation could also present a crisis for businesses who rely on having workers stationed overseas.

They fear even the most comprehensive life insurance policies could be rendered useless in some cases, with the current rules preventing inquiries from being set up to help establish the cause of deaths.

The Sunday Post understands efforts are underway to raise the issue at the next Scottish Trades Union Congress.

Jane Rose, from Prospect – the union that represents engineers, managers, scientists and other specialists – said it could potentially impact thousands of Scots workers.

Prospect is working to establish the full scale of the issue but says in the meantime guidance for workers and employers is “sparse if not non-existent”.

Rose said: “We’ve identified that this has potentially quite significant implications for our members but also for employers who have offshore workers or people who are working abroad.

“That definition of ordinarily resident seems to be the real sticking point and that has been going on now for some time.

“It seems to be becoming a bit of a football, getting kicked around between the Scottish Government, ministers and the Lord Advocate pushing it back to the Foreign Office.

“There is also an issue for us right now in terms of whether employers are aware, whether families are aware, and whether they have appropriate policies and protections in place based on the correct guidance.”

Rose confirmed Prospect has raised the issue directly with Justice Secretary Angela Constance but feels the union “haven’t gotten anywhere with that”.

Westminster report highlighted flaws

An All-Party Parliamentary Group report into deaths abroad in 2019 found insurance firms may not pay out in cases where there are suspicious circumstances around a death. However, they will pay out as standard on murder or manslaughter cases.

The group heard from one family who had the most comprehensive travel insurance but because the death was suspicious, the insurer would not even cover legal costs.

We reported previously how Angus dad Davy Cornock has lodged a petition with the Scottish Parliament to introduce a statutory definition of ordinary residence.

Davy Cornock and wife Margaret at home with a framed picture of David. Image: Mhairi Edwards/DC Thomson

Davy is fighting for justice following the death of his son, David, in Thailand in 2019.

The 63-year-old, of Ferryden near Montrose, remains convinced offshore worker David was murdered – a claim backed by private investigations – but because he was not considered ordinarily resident in Scotland, no inquiry was called into his death.

The lack of answers meant David’s children in Brazil became homeless after they lost out on his property and any insurance pay out.

The family believes that if his body had instead been returned to England, money to support their future may have been available.

Business leader warns workers

Billy Milligan is the director of a leading global manufacturing firm who has travelled extensively for his job, including stints of up to 100 days in areas he describes as “not always the nicest places in the world”.

His company has around 12,000 staff globally, with around 50 employees at its Glasgow branch being stationed overseas at any one time.

Milligan says he has now instructed the business to make sure any workers who die overseas are repatriated to England and Wales rather than Scotland.

He said: “This was absolutely not something we were previously aware of and I think that’s what makes it all the more shocking.

“We’ve been fortunate that we’ve never had to repatriate a body.

Billy Milligan, director of a major UK manufacturing firm, warns lack of FAIs puts overseas workers at risk

“If we had to do it now and they died in suspicious circumstances, I would absolutely be kicking in doors in our organisation to say under no circumstances should we bring them back directly to Scotland.

“We should bring them back through England or Wales otherwise there will be zero help from the Scottish Government as it stands.”

Campaigners says law must change

Julie Love set up the charity Death Abroad – You’re Not Alone and began campaigning for change following the death of her son Colin in Venezuela in 2009.

Her work played a major role in increasing support for bereaved families from the Foreign Office and helped shape the 2016 legislation at the Scottish Parliament that introduced fatal accident inquiries for deaths abroad.

But she believes that law should now be amended to include a legal definition for ordinarily resident.

She told The Sunday Post: “It would definitely be better if it was defined in law. It was probably an oversight with us.”

The Scottish Government said fatal accident inquiries are a matter for the Lord Advocate.

It added: “While it is the role of the Foreign, Commonwealth and Development Office to provide consular support, the Scottish Government is committed to identifying where support to families in Scotland can be improved.

“Any investigation into the circumstances of a death abroad rests with the authorities in the country where the death occurred. Without their significant co-operation it is unlikely to provide the answers that loved ones may be searching for.”