Question: I use a broker to insure my Toyota buses. I have been dealing with them for 28 years. The buses are covered under three policies. One had a renewal date in November 2005. I paid $32,720 and settled the balance over six months. The monthly payment was $20,000. On May 26, the insurer sent me a letter threatening to cancel. Since I had paid the balance and had receipts I ignored it. Seven days later, I got another letter. This one was copied to the police. It said the policy was cancelled due to non-payment. The broker has since given me a new policy and applied the refund under the old one to it. I now have 30 days to pay the balance. Something does not feel right. Could the matter have been handled differently?

- J.H., Kingston 17.

Answer: Cricket World Cup boss Chris Dehring told Caribbean service providers to "up their game." They should get ready for the biggest regional show. With the prospect of 100,000 visitors, he feels that "national pride (should) be on everybody's mind."

His selling job shouldn't be too hard. After all, tourism is one of the planks of our economy. World-class service should be the norm.

Your experience suggests that providers need to 'up their game'. It is simply not fair to reserve the best service for visitors and dish out the dregs to the natives.

Lawmakers part of insurance game

If you had a claim after the policy was cancelled, the insurer would still have had to pay. That decision was made by lawmakers. Section 82, sub-section (1), of The Insurance Act 2001 says a broker "shall, for the purpose of receiving any premium for a contract of insurance, be deemed to be the insurer's agent and, notwithstanding any conditions or stipulations to the contrary, the registered insurer shall be deemed to have received any premium received by the broker ."

Sub-section (2) makes the position on claims crystal clear. "An insurer on whose behalf a broker has received a premium or part thereof, shall accept liability arising under the policy, notwithstanding that the insurer has not received the premium." Even though your broker and insurer said they had terminated your policy, it was in effect. Due to their ignorance, you have got six months' free coverage on the new policy.

FSC as umpires

There are important lessons that should be learned from your experience:

1. You are the holder of the big stick in this game. You call the shots - not the broker nor the insurer. Instead of 'playing ease up' you should have fired them for cancelling your policy after you paid the premium.

2. You could also have yanked the chains of the broker/insurer by filing a complaint with the Financial Services Commission (FSC).

Registered insurers/brokers are required to have specific procedures for handling complaints - see http//www.fsc.jamaica.org/complaintsfiles/ for more details. Most insurers/brokers prefer to keep complaints from the prying eyes of the FSC.

3. Loyalty should be earned not given away. It is clear from the way you were treated that your business was not valued, even after 28 years.

4. The broker's "navel string" was tied to the insurer for many years. The only way to find out if your interests were primary to theirs is to seek quotations from other insurers.

5. Eleven companies are registered by the FSC to transact motor vehicle insurance. There are 36 agents and brokers. You do not have to remain wedded to the existing insurer/broker if you are dissatisfied with their service.

6. Fleet owners like yourself who run tight operations select drivers with care and report few claims, can pick and chose insurers.

National pride alone will not cause providers to 'up their game'. Likewise, blind loyalty on the part of the customer, does not guarantee fair treatment when it comes to the crunch. Buyers need to keep providers on their toes with a tug on the chain. When you let them know that you are in control, brokers and insurers will begin to play a different game.

Cedric E. Stephens provides independent information and advice on management of risks and insurance. For free information or counsel, email: aegis@cwjamaica.com.