A stolen 1997 Honda Civic recovered by the police, on exhibition at the Red Hills Police Station, on Sunday, April 16. The police are requesting that if anyone can identify this car, they are to contact the Red Hills Police Station. - ANDREW SMITH/PHOTOGRAPHY EDITOR
Question: My Suzuki SUV was stolen a few weeks ago. I reported the theft to the police and also to my insurance company. The insurers said that if the police did not recover the vehicle the claim would be settled in about six weeks. This seems like an awfully long time to settle a very simple claim. Is the long wait par for the course? Can I do anything to get my claim settled more quickly?
- P.W., Kingston 6
Answer: Insurance companies and JPS face similar problems. Sources say that many claims for the theft of vehicles are plagued by acts of dishonesty, fraud and corruption on the part of customers. This is not unlike customers of JPS who tamper with their meters. As a result of the actions of some customers insurers have to take measures to eliminate the 'bandooloo' claims. Another factor is the failure of insurers and the police to agree on how many vehicles are reported stolen. This, according to some insiders, is not unconnected with the first problem. It also complicates the process of settlement.
The industry website (http://www.jagiconline.com) contains dated but very useful information. The figures there differ sharply from those on police records. In 2004, for example, the industry says the number of Suzuki SUVs reported stolen to insurers amounted to eight vehicles.
There was one theft of this type of vehicle every 6.5 weeks. A year later the number of cases increased to 13. This works out to one incident every month. The total numbers of thefts reported to insurers during 2004 and 2005 amounted to 1,098 and 1,011 respectively. Those figures correspond to one theft every eight hours. The sources say those figures are increasing. Crime statistics published by The Planning Institute for 2003 say that only 77 cases of vehicle theft (called larceny by the police) was reported. There were 68 cases recorded in 2002. Although police and members of the industry are working to tackle the growing problem of vehicle theft there is no explanation for the wide disparity between the two sets of figures.
INVESTIGATION
Claims for the theft of motor vehicles are checked to ensure that they are genuine. This usually involves the appointment of an investigator by the insurer. The longest part of the process is to get a report from the person or firm who conducts the investigation. None of the companies would tell me precisely what is involved in the investigation. All they would say is that it depended on the circumstances. A routine check could be over in two weeks. A detailed investigation could last as long as six weeks.
No information was offered about the firms doing the investigations. Contact is routinely made with the police to find out if the vehicle has been recovered. Only one of every two stolen vehicles is ever found by the police.
Insurers take swift and decisive action when there is evidence of wrongdoing on the part of the insured in a theft claim insurers. This is done in keeping with the terms of the condition of the policy. The typical fraud condition reads as follows:
"All benefits under this policy shall be forfeited if a claim is any respect fraudulent, or if any false declaration is made or used in support thereof, or if any fraudulent means or devices are used by the insured or anyone acting on his behalf to obtain such benefit."
My informal survey revealed that the settlement times for theft claims ranged from a low of two to a high of six weeks.
Unfortunately, I was unable to get any specific information to decide why some companies were more efficient in handling theft claims than their counterparts. I would suggest that you make a special effort to locate all of the papers for your SUV in the event that it is not recovered. You will have to turn these over to insurers before your claim is paid. Finally, I would suggest that you install an anti-theft device in your next vehicle. It could end up saving you a lot of expense and hassle in the future.
Cedric E. Stephens provides independent information and advice about the management of risks and insurance. If you need free information or counsel to help you solve a problem write to The Financial Editor or contact Mr. Stephens directly at aegis@cwjamaica.com
