FAQs

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1. What is an Insurance Premium?

The price an insurance company charges for coverage, based on the frequency and cost of potential accidents, theft and other losses. Prices vary from company to company, as with any product or service. Premiums also vary depending on the amount and type of coverage purchased.

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2. Is there a difference between Excess and Deductible?

An excess is the first part of each and every claim or loss which is excluded or the amount of the claim which is deducted from each claim. That amount of the loss is born by the insured. Either a specified dollar amount or a percentage of the claim amount.

Deductibles on the other hand is a very large excess and it is common to see the word deductible rather than excess in commercial policies and home owners polices, whereas a number of you who have vehicle insurance would see the word excess. Nowadays, however, it is common to find the terms being used interchangeably.

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3. What is a 'material fact'?

Information that would affect an insurance company's willingness to accept a policy, or the premium it would charge. Failing to disclose a material fact could invalidate a policy. Typical examples include previous driving convictions or a history of subsidence in a house.

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4. What is an Insurance Policy?

An insurance policy is a contract between you and an insurance company, in which the company promises to take over the financial costs of certain risks. The policy describes the item(s) covered, the risks you are covered against and specifies your rights and responsibilities, along with the terms and limits of the cover.

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5. What is a 'fortuitous event'?

For an event to be insurable its happening must be accidental and not deliberate on the part of the insured. An example of a non-fortuitous event or loss is an insured intentionally setting his or her home on fire. The event must be fortuitous as far as the insured is concerned.

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6. What does the term Indemnity mean?

Indemnity is the legal principle that the policyholder should be restored to the same financial position that they enjoyed prior to a loss occurring. There are a number of options opened to an insurer which will provide the policyholder with the necessary indemnity and these are:-

Cash Payment
Repair
Replacement
Reinstatement

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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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7. How much time do I have to buy additional insurance protection before an approaching hurricane?

Most insurance companies will not issue new homeowners coverage once an area has been placed under a hurricane watch or warning by the National Weather Service. This moratorium usually remains in effect for 48 hours after the watch/warning has lifted.

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8. What steps should I take before a hurricane hits and immediately afterwards to make the claims settlement process earlier?

Make sure you have an adequate inventory of personal property. This inventory should include receipts, serial numbers, photographs and video tapes when possible. If your property is damaged by a hurricane, you should take all reasonable steps to protect it from further damage. Then prepare a list of all damaged and destroyed property.

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9. What can I do to ensure that my claim will be settled quickly?

Your first official step is to fully complete our claim form and return same to your broker representative or us, ASAP but definitely within 30 days. The forms are available from your brokers, our office or web site.
For contents, prepare an inventory of damaged / lost items available with date of purchase, purchase price, replacement cost or repair estimate.
For building, have a detailed estimate from the person(s) you intend to have restore it.
Make yourself available for claims adjuster.
Allow at least one hour for adjuster to survey premises and take photos etc. (Have documents ready, e.g. site plan, claim documents).
Make sure to point out all known damage.
The adjuster will have local rates sheets for similar types of building repairs and will prepare his costing based on measurements taken by him.
If his costing is in line with estimate / claim made by you the adjuster might request that you sign Proof of Loss Form which verifies that you accept the amount proposed to you by the adjuster as your loss.
The adjuster will then send their report to us and we compare your loss with the policy coverage in place.

Info required about Damaged items:

Item Description
Year Purchased
Original Cost
Replacement Cost or Repair Cost

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10. How are household claims settled where the item concerned is irreparable?

Indemnity or market value refers to an instance where a deduction is made for wear and tear. The amount which is paid is the amount required to replace the item with a replacement of the same age and in the same condition. This option however is rarely chosen and some insurers do not offer this type of cover.

The other option is new for old or reinstatement. Here the full cost of replacing the item as new is paid. Most insurers deduct a certain amount for wear and tear in certain circumstances; such as clothing and household linen. A deduction may also be made if the sum insured is inadequate or for property over a certain age.

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13. What is the term period of my insurance?

The LPP provides coverage for 1 year from the date of issue and will terminate after 12 months unless renewed. The insurance cover comes into effect 10 days after the receipt of the annual premium.

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14. How and when will I know if I receive a payout?

Within 4 days of an event, you will receive an SMS on your mobile phone to confirm the occurrence of the triggered event and the payout amount. You do not need to fill out any forms. Within 14 days the payment will be deposited to your bank account.

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15. Who will pay me?

The distribution channel where you purchased the LPP, e.g. a credit union, will deposit the payout amount to your account.

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16. What if I do not experience a loss but the event has triggered a payout?

You will still get the payout even if you do not experience any loss, because the actual payout is only based on wind speed and rainfall amount as recorded by the independent calculation agents.

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17. If several events affect the same location, is there any limitation regarding the payout?

The maximum annual payout per location is 100% of the sum insured. If this is exhausted in one or two events, you are advised to renew the cover.

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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%.