QUESTION:
I WAS involved in an accident in June 2002. My car was stationary. The accident took place on Marescaux Road shortly after I left Fidelity Motors where it had undergone repairs from a previous accident. I was waiting in a line of traffic for about three minutes when I heard a big bang and realised that I was hit. The other driver and I made a report to the Allman Town Police Station. The next day I filed a report with my insurers, British Caribbean. My car was repaired for the second time. In December when I re-newed the policy I learnt that premiums had increased and that I lost my no claims bonus. Can you help me after all these years?
- piablase@yahoo.com
ANSWER: I am sorry to learn about your accident. It also disturbs me that you ended up being the victim. Your cry for justice - assuming what you said is true - is not unreasonable. The insurance system has failed you. What is worse is that three years after the event, I cannot help you to recover the extra money you paid in premiums as a result of the accident.
Your case is yet another reason why the insurance regulators - the Financial Services Commission (FSC) - need to start paying more attention to market conduct in relation to motor insurance. Market conduct concerns the way business is done. The FSC head and the insurance director agree that much needs to be done after the start with the average clause in 2001.
If government departments have to comply with requests for information under the Access to Information Act within 30 days, time limits for dealing with motor claims fairly and quickly should be the norm. Will the new Insurance Association of Jamaica follow the lead of its U.K. counterpart and set limits before the FSC decides to place market conduct on the front burner?
You are not powerless in spite of what took place. Here a few things that you should do four to six weeks before the renewal of your policy:
Ask your insurers to give you details of your claims history for the last five years. Check it to make sure that it is accurate.
Shop around for quotations, using the information your insurers gave you and giving detailed explanations about previous accidents. Do not forget to highlight your quarter century of driving.
In shopping around use the services of three or four brokers. Pay particular attention how they treat you. Is the staff polite, and do you get the impression that they are putting your interest first?
Tell them what you are expecting to achieve, and find out if those expectations are realistic.
Find out what type of after-sales service you can expect. Listen to what they say very carefully. Are things explained in terms that you understand? Do they use insurance jargon that you do not understand?
Ask them to describe how they deal with complaints from customers.
Ask them to give you an assessment of the insurers they recommend, based on financial strength, reputation, speed and fairness in dealing with claims when they give you information about the premium.
Do not rely exclusively on the brokers for information. Discuss the matter with your family and friends. Contact a few of the insurance companies on your own without telling the broker.
There are many things that you can learn from your experience. Lesson one: stop playing the role of victim. Lesson two: take charge. There are tons of information on the Internet providing useful tips about buying motor insurance and how to save money.
If the insurance regulators, insurers and brokers do not realise this, consumers like you can force them into the 21st century - kicking and screaming - much in the same way as a certain local landline phone operator.
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
