Insurance Helpline With cedric Stephens

Question: A bus that looks like those run by the JUTC struck the back of my vehicle. The accident took place one day before I left the island. Both vehicles were insured with the same company. The owner/driver claimed to have left his licence at home.

An assessor examined my vehicle one month later. I was asked to supply the driver's phone number one week after that. They wanted to get details of his licence. Shortly afterwards, the policy expired. The insurers increased my premium by over 100 per cent. I protested and the increase was dropped.

Brokers are supposed to look after the interests of their clients. My broker turned out to be completely useless. How will my claim for loss of use be settled? How should I go about claiming for the injuries that I suffered? If I decided to file a complaint, where would I go?

- jensjames@hotmail.com

Answer: Hundreds of persons flocked the offices of the Ministry of Labour and Social Security last Tuesday. They were, according to a report in this newspaper, trying to land one of 450 construction jobs.

These positions are being offered by employers in Canada. Many of the applicants, claims Dr. Leahcim Semaj, "because they lack education, also lack trainability."

The management of the two companies should accept the blame for the problems you experienced.

Your case is another example that shows the broker and insurer did not carry out their training functions. This is precisely why I ended last week's article by referring to Thomas L. Friedman's book, The World is Flat: A brief History of the 21st Century, with the conclusion that they were still sleeping.

LOSS-OF-USE

Loss-of-use expenses tend to be touchy. Here a few things that guide how these claims are settled.

1. They are usually paid when the other person is at fault. Settlement is made under the liabi-lity section of that person's policy. Each policy has a limit for all kinds of property-damage claims.

The size of the limit varies between insurers. Sometimes, depending on the type of vehicle, and the amount of damage, the limit turns out to be too low. There are no blank cheques for loss-of-use claims.

2. Payments are made on the basis of what is fair and reasonable. If the car that you drove before the accident was a 1998 Toyota Corolla, insurers will not pay for the rental of a 2007 Toyota Camry.

3. The period of rental begins from the time the damaged vehicle became disabled and lasts until it is repaired. Delays due to the unavailability of parts are omitted.

4. Loss adjusters, in conjunction with repairers, usually estimate how many days are needed to repair the vehicle. This estimate is used to fix the length of the period in item 3, above.

PERSONAL INJURY

Claims for personal injuries pose more problems than those for property damage. The human body is far more fragile and complex than vehicles.

Medical, legal, economic and financial factors are some of the things that make them difficult. Claims involving neck and back injuries could turn out to be serious.

I suggest that you obtain the services of an attorney to guide you.

FILING COMPLAINTs

Filing complaints against your insurer and broker could turn out to be a complete waste of time. The Financial Services Commission (FSC), the body that regulates the insurance industry, takes a very narrow view of its job.

The industry pays little or no attention to the training of employees. Yet, in spite of this, a fact that the FSC should know, it wields its big stick only when the law has been broken (www.fscjamaica.org/complaints).

Last words: Colin T. Bent, an insurance professional, writing from Tulsa, Oklahoma, reminded me that United States consumers can sue insurers for "bad faith and breach of contract."

The threat of this type of action keeps them on the straight and narrow.

Buyers here cannot do the same.

Finally, in last week's article I overlooked the fact that in 2004, the FSC prepared a discussion guideline that dealt with conflicts of interest in the insurance industry.

There was, unfortunately, nothing in the draft procedures about conflicts in relation to the conduct of motor insurance.

Insurers, brokers and the FSC need to change course.

Cedric E. Stephens provides independent information and advice about the management of risks and insurance. For free information or counsel write to The Financial Editor(business@gleanerjm.com) or contact Mr. Stephens at aegis@cwjamaica.com