Susan Gordon, Business Reporter

Chung

The British Caribbean Insurance Company Limited (BCIC) has introduced a new protection and security product for its female drivers which it hopes will mitigate theft and yield savings of over $300 million in claims from theft annually.

BCIC sees strong revenue potential in its new LadyMax product. But the product was also designed to reign in the company's exposure from vehicles, for which its payouts for the period June to December 2006 were about $76 million.

"My target this year is that the product will be a new business income bringing in between $150 million and $300 million," BCIC managing director Leslie Chung told Sunday Business, adding that this was a conservative estimate.

He declined to comment on the cost of getting the product to market.

Wooing other customers

Considered the fifth-largest motor insurer of 11 in the market, Chung says he intends to woo existing clients from other insurance companies to this service.

LadyMax is a security-focused comprehensive motor insurance policy for female-owned vehicles insured at a minimum of $2 million. About 30 to 40 per cent of BCIC's existing female clients qualify for the product, Chung said.

Type of assistance provided

LadyMax provides assistance on the scene of accidents or breakdowns, including wrecker and ambulance services, and assistance in repairing the vehicle after the accident, under its Assist Accident Scene Response feature and Assist Care Centre Repairs Manage-ment Service.

The product was conceptualised a year ago.

BCIC has also partnered with Ricky Mahfood's Hawkeye Electronic Secu-rity for protection services to subscribers of LadyMax. Hawkeye will install anti-theft tracking device in the vehicles and help in the recovery and retrieval of the product.

The five largest motor insurersin the industry, said Chung, recorded 637 stolen vehicles in the latter half of 2006.

At average value of $3 million per vehicle, the thefts would have amounted to $1.91 billion over the six-month period.

BCIC recorded more than 100 claims for stolen vehicles last year from its clients.

Chung is targetting an 80 per cent reduction in claims through recoveries of stolen vehicles via the tracking devices.

Asked why the insured value of the motor vehicle threshold was so high for LadyMax, Chung indicated that the criteria were based on anticipated start-up business, but that the threshold would eventually be lowered once clientele builds and economies of scale kick in.

"Once that succeeds enough (for) funds to pay for the tracking device, we will lower the threshold," he explained

He also noted that the average motor claim has moved from $1 million to $5 million and $7 million.

Some of the features of LadyMax are a $250,000 cover for death benefits and hospital fees arising from personal accidents; and, third party liability of a minimum of $5 million in property damage and or personal injury and an aggregate of $10 million per accident for claims against policyholders who may be at fault.

susan.gordon@gleanerjm.com