By Cedric E. Stephens, ContributorQuestion:
I LIVE and work in the USA. In a few months' time, I'll be pulling up my roots here to return home. I own a 10-month old SUV that I will be shipping to Jamaica. What are some of the things I should know about motor insurance? My parents took me here when I was 15-years old. I have been living here for about 20 years. As a result, I know nothing about motor insurance or the local market. Finally, I heard that on-line motor quotations are now available. Would you recommend them?
- ayardie@aol.com
Answer:
It's nice to hear that you have decided to return home in spite of the fact that our economy continues its journey to nowhere. I thought that the traffic was flowing only one way. I am glad to learn that I am wrong. That, as our currency continues its steep, downward slide and, as our political masters [?] continue to grope around without a vision, young persons like you have not given up hope in this country.
Motor insurance here is run by The Motor Vehicles Insurance (Third Party Risks) Act. It says that vehicle owners should have bodily injury and property damage liability insurance. The amount of insurance set out in the Act is the minimum. Most US states require car owners to have insurance. Coverage there is similar to what is required locally. That is, insurance against bodily injury and property damage liability. There are differences in the amounts of insurance that is required. However, the laws in both countries make insurance compulsory. The minimum amount of insurance required by law, both here and in the US, is often not enough. In the event of a serious accident, you can be sued for more than the statutory limit.
Local "comprehensive" policies are, in some ways, also similar to those in the US. They cover many kinds of losses. These include damage arising from collision, overturning, flood, hurricane, earthquake, vandalism or riot and strikes and loss by fire or theft. These perils are in addition to the liability insurance required by law. The damage sections of comprehensive policies have excesses or deductibles. This is similar to the situation in the US. For more specific information, about what types of coverage are available here visit www.jiiconline.com "Motor Frequently Asked Questions."
GET MORE DETAILS
There are 13 non-life [general or P&C] insurers in Jamaica. All of them write motor insurance. I suggest that you ask a friend to telephone say six of them to get their website addresses. This should allow you to get far more details about the local market and the companies themselves. Do not be surprised if you do not find any financial information. Even though they are now forced to publish their financial statements in the newspapers, they seem coy about posting them in cyberspace.
On-line motor quotations are not common here. Only one insurance broker offers this service. They use "on-line" as a work of art. The feature is limited to the filling out and submission an application form. On-line doesn't mean that you will get an immediate response after you have completed the form [in a six-stage process] and submitted it. What happens is that the brokers will provide you with the three quotations - some time in the future. Since we do not have any laws dealing with electronic transactions, I have doubts about the legality of the process. On the other hand, I guess that it can provide an indication of the premium without too much hassle.
My information is that despite all the hype, US insurers have not worked out all the bugs in providing on-line quotations. Call me biased. Although I have not tested the only source of on-line motor quotations here as yet, I am very reluctant to disclose information in cyberspace to persons I do not know.
Cedric E. Stephens provides advice on risks and insurance. If you need free information or advice to solve a problem, write to The Financial Editor or, contact Mr. Stephens directly at aegis@cwjamaica.com
