Question: Some insurance companies are now offering roadside assistance services as 'add-ons' to their motor policies. What do you think about these extras? Which company offers the best package of benefits?
- T.N., Kingston 5.
Answer: 'Nutten nah gwaan!' These three words have moved from the lips of some inner-city residents to those of persons who occupy office suites, corporate boardrooms and other places of influence in Jamaica. The shortage in the supply of cement has brought construction to a halt. Companies that depend directly and indirectly on the building trade are reporting declines in their sales. The threat of the 'nutten naw gwaan' contagion spreading into the wider economy has created a flurry of activity in the corridors of power in downtown Kingston, New Kingston and along Hope Road.
CONNECTION
Is there a connection between conditions in the construction sector and the motor insurance industry?
Perceptions about the business of motor insurance in Jamaica remain unchanged. In spite of all the hype about roadside assistance (some industry sources suggest it is the greatest 'invention' since sliced bread) nothing much is happening! The key concern of buyers, according to my informal survey, are still (a) paying the lowest premium for the best coverage; (b) getting claims settled speedily and fairly (in no particular order).
'Nutten nah gwaan' might well describe the view of most consumers. Buyers - me included - tend not to place too much emphasis on roadside assistance services when arranging coverage. I am not saying that the service is unimportant. Rather, it is not a must have - like the ubiquitous cellphone.
To set the record straight, roadside assistance is an import - not a local invention. One of the fastest-growing motor insurers in the U.S. compares 'car troubles' with going to the dentist and the common cold. We do what we can to avoid them. Roadside assistance services were developed to help motorists cope with 'car troubles' in a big country that is very dependent on private means of transportation. Towing, changing a flat tyre, battery jump start, emergency fuel and fuel delivery and locksmith services are some of the services offered to motorists on their journeys.
Local insurers have adapted those roadside assistance services to meet the needs of this market. They have also added special features to differentiate their product (the policy and the assistance) from those of competitors. The table sum-marises some of the main features of the service which is offered by some insurers:
The benefits which are available under the roadside assistance services are not created equal. Similarly, the terms of the coverage which are offered by the insurers in this sample vary. Buyers and their advisers (brokers) will therefore have to exercise greater care in deciding which insurer they select, given all the factors. The situation has become more complicated.
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
