FAQs

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7. What is 'proximate cause?'

Proximate cause is the initial act or occurrence which sets off a natural, uninterrupted and continuous sequence of events that produces damage. In the absence of the initial occurrence which produces damage, no loss or damage would have resulted. Therefore when an insurance company asks you what was the proximate cause of house being burnt, they are not necessarily referring to the fire but what caused the fire.

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8. What is Insurable Interest?

It simply means that the person seeking coverage must stand to suffer financial loss as a result of the property being damaged. A homeowner will obviously suffer financial loss if his or her home burns down. You cannot, however, purchase insurance on your neighbor’s house and collect in the event the house burns as you do not have an insurable interest.

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9. What does the term Subrogation mean?

The right of the insurer to take over the insured’s rights following payment of a claim, to recover the payment from a third party responsible for the loss.

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1. Who can drive my vehicle?

Your Certificate of Insurance, Cover Note or Policy Schedule provides detailed information on the person(s) permitted to drive. There are, at times, limitations on the age and driving experience your drivers should have. Please look out for these.

Your vehicle is a prized possession, be selective about the persons you allow to drive it. A careless driver could cause your premiums to increase.

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2. How does the no claim discount work?

This is a discount you earn for not making a claim under your policy. As long as you do not make a claim it increases annually until it reaches a maximum percentage. It is important to note that even if you are not at fault in an accident, once you have made a claim, your discount will be reduced. It will be reinstated if we recover our expenditure.

Accident free driving is the best way to keep your premiums at a reasonable level.

Your No Claim Discount is not transferable to another person. However, you can transfer it from one of your vehicles to another one owned. However, it is not automatic that upon the purchase of the second vehicle you will get the same No Claims discount.

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3. If I modify my car to boost its performance, will it affect my premiums?

If you decide to modify your car to make it more powerful or faster we need to know. Unfortunately, such modifications increases the risks associated with your car and consequently the premiums.

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4. Does my policy provide a grace period?

No. The Law specifically prohibits us from granting you a grace period. Your cover expires at midnight on the date stated on your Certificate of Insurance. Therefore, if the day after the expiration of your cover is a weekend or Public holiday you must ensure your cover is renewed early.

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5. How can I minimize the cost of my insurance?

You could restrict the driving of your vehicle to two named persons.
If you insure all your vehicles with one insurer you will be entitled to other vehicle discounts. And you can simply maintain a good driving record.

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6. Why Motor Insurance?

Under the Motor Vehicles Insurance (Third Party Risks) act of 1988, a minimum level of insurance is compulsory if you intend to operate a vehicle on the St. Lucian roads. Being caught driving a vehicle that is not insured is an offence.

In addition, it is in your best interest to ensure that whether through someone else’s fault or yours an accident or loss does not cause you financial hardship.
Insuring your vehicle is a means of protecting yourself.

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1. Will my homeowners insurance policy pay for temporary housing or other out-of-pocket expenses such as cleanup costs?

Some policies will pay for temporary housing if a hurricane makes your dwelling uninhabitable and the damage is caused by a covered peril. Most policies also will cover reasonable expenses for removal of debris and architects and surveyors fees. However you must request these additional benefits and there is usually an additional premium attached. Speak with your insurance company or broker regarding this cover.

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2. Will my homeowners insurance policy cover destruction to furniture, clothes and other contents of a dwelling from a hurricane?

You will only receive compensation for damaged furniture and other contents in your private dwelling if you have insured these and therefore they are insured by the company. Depending on the policy, coverage may pay for a new replacement item, or payments may be reduced based on the item's depreciation.

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3. Are my vehicles covered by homeowners policy?

Damage to motor vehicles is not covered by a homeowner’s policy. Hurricane damage, including flooding damage, will be covered by your automobile insurance, provided your policy has ''comprehensive'' coverage.

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4. Will my homeowners insurance rates go up following a hurricane? Or is there a possibility of cancellation?

Homeowners rates usually won't go up following a single hurricane. Rates are based on property insurance payments within the territory over the past several years, plus an amount held in reserve for a hurricane or other catastrophic event. Rates usually will be increased only after a series of large catastrophic loses that depleted this reserve. A homeowner's policy is not likely to be cancelled solely because of a hurricane. Companies could decide against continuing a policy if there were hazards on the property that aggravated the damages, such as dead trees or a faulty roof, and if there had been other losses on the policy in recent years.

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5. What should I do in the event of a Burglary, Housebreaking or Fire?

Immediately report all these incidents to the police and the Fire service, in case of fire.
Where a crime has been committed do not tamper with any potential evidence before the arrival of the police
Take photos where possible to show entry, exit and damage
Contact our Claims Department or your broker representative as soon as possible List all damage / loss to building and contents.
Locate and secure you insurance policy and any other personal contractual documents.

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6. What should I do in the event of a Flood, Hurricane or major natural disaster?

Take photos of damage
Secure premises with board, tarpaulins etc. to prevent further loss or damage to building and contents
Keep all invoices and receipts for sums spent in securing the premises
Contact our Claims Department or your broker representative as soon as possible for guidance
Clean up debris Salvage as much as possible.
Dry out electrical items, clothing etc.
If necessary, use a generator to run essential electrical appliances e.g. freezers
If the premises are rendered uninhabitable, seek reasonably priced temporary alternative accommodation. There is some coverage under your policy.

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7. What are the sources of weather data?

Independent calculation agents monitor the weather situation. High wind speed and rainfall are respectively monitored by the Caribbean Catastrophe Risk Insurance Facility (CCRIF) and DHI (formerly known as Danish Hydraulic Institute).

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8. What features does the insurance scheme include?

An early warning SMS will inform you of upcoming extreme weather events, allowing you to take appropriate precautionary measures to protect you, your family members and property. Within 4 days of a triggered event, you will also receive an SMS on your mobile phone informing you that you will receive a payout.

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9. Can I buy the insurance for my relatives who live in other areas?

Yes, it is possible to buy insurance coverage for other persons. You will need to submit a duly completed LPP enrollment form together with the premium payment to the local insurance company or an authorized distributor.

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10. Can I purchase the Livelihood Protection Policy if I have another insurance policy (e.g. car, house, etc.)?

Yes. The LPP is a flexible product and may be bought in multiple units of insurance coverage, allowing you to choose the level of protection you need.

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11. What are the sum insured and the premium rate?

The minimum sum insured and annual premium vary from country to country. Please contact the local insurer/distribution channel for details.

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12. When and how do I pay the premium?

Premiums for the first 12 months of coverage are due when the LPP enrollment form is submitted to the insurer/distribution channel. Payments can be made through the local insurer/distribution channel of your choice.

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1. Temporary Replacement Vehicle

If the insured vehicle is out of use as a result of loss or damage insured under the policy we will indemnify you in respect of the necessary daily hiring charges incurred in obtaining a temporary replacement car from any recognized self drive hire operator. Subject to the policy terms and conditions.

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2. Increased Windscreen Cover

The comprehensive policy automatically provides up to $3,000.00 coverage for accidental damage to glass and windscreen of the insured vehicle, with no applicable excess. If the insured wishes he/she can increase that amount to $5,000.00 and pay the appropriate additional premium.

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3. Personal Accident Benefits

If you and/or your spouse are injured while traveling in or getting into or out of any motor car we will pay to you or your legal representatives the compensation as specified in the policy.

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4. Agreed Value Charge

The amount by which the insurer and insured agrees to insure the vehicle, without the deduction of depreciation should the vehicle be involved in an accident during the policy period. Should the vehicle be involved in an accident and the vehicle is considered a constructive total loss, the insurer would pay the insured value at the start of the current policy period.

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5. Deductible/Excess

The first part of the loss which must be borne by the insured.

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6. No Claims Discount

A discount an insurer agrees to provide the insured for that insured’s claim free driving experience. The no claim discount increases for every year the insured does have a claim. The maximum no claim discount one can enjoy is normally 60%.