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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13. My windscreen was recently broken. If I make a claim will it affect my no claim discount?

Your motor policy covers breakage of your windscreen or window up to a specified amount. There must be no other damage or injury apart from scratches caused by the shattering of the glass. Once this is the case the excess is not applicable and it will not affect your no claim discount.

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14. What is The Proposal Form?

This form is used by Insurers to gather information about the risk to be insured. For motor insurance some of the things insurers would be interested in are the person who owns the vehicle, the vehicle itself and the drivers. This will enable them to determine whether or not to accept a risk and the premium to charge. All the questions must, therefore, be answered truthfully and any material facts should be disclosed. A material fact is any information an Insurer would regard as likely to influence their assessment and acceptance of a risk.

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15. Why do I get a Certificate of Insurance?

Under the law, the Certificate of insurance is required as proof of the existence of insurance. It must be returned if the policy is suspended or cancelled. If it is lost, you should advise us immediately.

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16. I have purchased Comprehensive Cover so why does the top of my certificate mention Third Party Cover?

The law, which makes motor insurance compulsory, is called the Motor Vehicle Third Party Risks Law. The reference to third party is simply acknowledging that you have satisfied the legal requirements.

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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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1. Am I eligible to buy the Livelihood Protection Policy and how can I buy it?

The Livelihood Protection Policy (LPP) is targeted at all individuals and you are eligible regardless of your annual income or means of employment. To buy, contact your Credit Union or call EC Global Insurance Agency at 451 3244 or 456 6270. Click here to download the enrollment form.

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2. What weather events or hazards are covered and what can be insured?

High wind speed and high rainfall exposure are the covered events, as recorded in the location identified in your policy document. You do not need to identify any physical property to be insured.

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3. Is any on-the-ground assessment conducted as a prerequisite to be accepted as a new client and to receive payouts?

No. The insurance payout does not relate to actual experienced loss, but is tied to the amount of rain or the wind speed in a given event. Therefore, no on-the-ground assessment of property at risk is conducted prior to accepting a new client or prior to a payout.

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4. Is there a specific period when I can buy the Livelihood Protection Policy?

The LPP is available throughout the year.

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5. What if I experience a loss, but I did not receive notification of a triggered payout?

The insurance payout is made on the basis of the weather data reported by the independent calculation agents. There might be an instance where you could have experienced some loss, but there was no triggered payout because the rain and/or wind thresholds were not exceeded.

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6. How is payout calculated?

St Lucia is divided into two zones: North & South. The North Zone includes Gros Islet, Castries, Anse la Raye, Canaries and Dennery and the South Zone includes Soufriere, Choiseul, Laborie, Micoud and Vieux Fort.

Payout is based on the weather index (excess rainfall and high wind speed) measured and reported in the two zones.

Each Zone has pre-defined thresholds, called trigger values, corresponding to different trigger levels and amount of payout (see tables below).
Once a trigger value is reached, the payout will be "triggered" automatically and be transferred to the client's bank account.

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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%.