Personal accident insurance as the term indicates, provides insurance protection for persons sustaining bodily injury which results in death, temporary or permanent disability and hospital confinement with compensation in the form of a fixed benefit or of an indemnity nature. Accident in this context includes the definition of unforeseen and unintended but as it relates to the person it must be occasioned by a violent, external and visible means. The reimbursement of medical expenses as well as the replacement of loss income occasioned by such injuries are also available under a policy of this nature. The policy is marketed under the Accident class of insurance by a general company while it is referred to Sickness & Health under a life insurance company. It is generally accepted that where the policy contains a sickness component, it can only be sold by a life or health company.

BENEFITS

The policy normally includes ore or more of the following benefits and coverage is usually offered both locally and overseas.

1. Accidental Death provides a lump sum benefit provided such death takes place within 365 days of sustaining injury.
2. Accidental Dismemberment or permanent disablement will pay a percentage of the principal sum under the policy if the loss is sustained within 365 days of the occurrence
3. Permanent Total Disablement compensates for permanent loss of income and pays a benefit equivalent to the sum insured.
4. Temporary Total or Partial Disablement will pay for short term loss of income for a period of up to two years and some insurers will replace this income for loss caused by both accident or illness.
5. Medical Reimbursement is also a benefit to be derived and involves the payment for eligible expenses attributable to an injury.
6. Hospital confinement benefit covers time spent in a hospital and pays a daily sum stipulated in the policy.

MARKETING

Personal Accident insurance can be sold as a group policy or as an individual stand-alone product and in many instances as a rider to a base policy.

1. A group policy is generally sold to a company to cover its employees and this product constitute the bulk of disability insurance sold in Jamaica. Other group products can include those sold to schools, churches, associations and sporting institutions. These products require minimal underwriting and in some cases are sold on a mass marketing basis.
2. Individual products would obviously be policies individually underwritten requiring more personal information.
3. Riders are currently sold as an attachment to an individual life insurance policy or on a home owner’s policy. It is also becoming the practice of general companies and brokers to attached what is popularly known as an auto rider to the motor vehicle insurance on the premise that the drivers of motor vehicles are not normally covered under the standard motor insurance policy.

EXCLUSIONS

Like all contracts of insurance, there are circumstances under which benefits are not paid and these are outline below;

1. Suicide and injuries caused from self-infliction
2. Commission of a felony
3. Active participation in strikes riots or civil commission
4. Being under the influence of alcohol or narcotic drugs
5. Cosmetic surgery resulting from an injury
6. Riding in a vehicle engaged in racing
7. Inhalation of gas or taking of poison
8. Flying none commercially without the granting of an extension
9. Diseases of any kind where the policy is an accident contract only

CLAIMS

The claims process is simple and would require certain documentation depending on the specific benefit. All claims must be accompanied by a claim form and a physician statement. A death or dismemberment claim however would require a police report as well as a post mortem in the case of death. Replacement of income requires an employer’s statement to verify absence from work, while it is important to supply original receipts to claim on the medical expense benefit. the insurer always reserves the right to request any addition information to assist in the adjudication of claims.

CONCLUSION

It is the general view that the personal accident insurance market is under-served and there is tremendous opportunity for such a product to gain wide acceptance especially in the motor market. There is also an opportunity for companies to offer a wider suite of individual products given that a large section of our working population is not part of a formal employee employer group. It is hoped that the forgoing information will stimulate a wider acceptance of the product.

Mr. Carlton Raymond the writer, has over 47 years of experience in the Insurance Industry and has worked in several Insurance companies and brokerages. He currently lectures at the College of Insurance and Professional Studies in the area of Personal Insurance. He is a Chartered Life Underwriter, a Fellow of the Life Management Institute and he also holds a professional designation as an Associate in Customer Service. He is employed to Caribbean Assurance Brokers and is currently in the position of Director of Training and Agencies.  

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CAB believes that the customer is its most important asset, and in fulfilling their Mission to consistently delight their customers at each point of contact with their brand, they successfully relaunched the Caribbean Assurance Brokers Loyalty Programme in association with Silver Star Motors (Mercedes-Benz) at their Mercedes-Benz Showroom. CAB provides a value added benefit of doing business through the Loyalty Programme. This initiative is CAB’s way of giving back to their over 50,000 customers, whereby customers receive discounts whenever they present their Loyalty Card at any of CAB’s over 200 health care providers and merchant partners island wide. Categories include: Dental Offices, Medical Labs, Medical Practitioners, Optical Services, Pharmacies, Physio Therapists, Gyms & Spas, Restaurants, Salons and more!

“Silver Star Motors (Mercedes-Benz), one of the Merchant partners of Caribbean Assurance Brokers Loyalty Programme, delights customers by giving $500,000 discount off Mercedes-Benz vehicles when they present their Loyalty Card”

From L-R: Amanda Lechler, Brand Manager – Mercedes Benz, Raymond Walker, Chairman and CEO – CAB, Jackie Stewart-Lechler CD, JP – Managing Director – Stewart’s Automotive Group

The Honourable Minister Audley Shaw, Minister of Industry, Commerce, Agriculture and Fisheries, guest speaker at the event, commended the team at CAB for the significant role they have been playing in Jamaica’s insurance industry. He further commended CAB for having the largest international health insurance portfolio in Jamaica, and their innovative response to their clients needs. He emphasized the visionary leadership and stated that “Government wants to see more of these kinds of initiatives across the private sector that will redound to the benefit and well-being of customers.” He urged the public to become a member of the programme and take full advantage of the benefits that can be derived from it. Minister Shaw also noted the contnbution of CAB to the general economic well-being of the country.

Another speaker at the event Mrs. Jackie Stewart-Lechler, Managing Director of Stewart’s Automotive Group, stated that “we are very proud to be a Merchant partner of the Caribbean Assurance Brokers Loyalty Programme and we are extremely excited to offer CAB customers an amazing discount of $500,000 when purchasing a new Mercedes-Benz vehicle.”

The Official Launch event also served to highlight CAB’s loyalty programme partners and the amazing benefits and discounts (up to 35% off) to be derived from them.

“Caribbean Assurance Brokers Limited and Mercedes Benz, one of the Merchant partners of their Loyalty Programme recently launched at Mercedes-Benz Showroom”

From L-R: Raymond Walker, Chairman & CEO – CAB, Jackie Stewart-Lechler CD, JP – Managing Director – Stewart’s Automotive Group, Amanda Lechler, Brand Manager – Mercedes-Benz, Natalie St. Louis, Strategic Corporate Consultant – CAB

Another incredible feature of the Loyalty Programme is the alliance forged with Brawta Living, where CAB customers will receive an additional five percent (5%) discount off all Brawta Living deals.

CAB’s Chairman and CEO, Mr. Raymond Walker, expressed his pleasure and satisfaction with the support received from CAB customers, partners and well wishers over the years and states that “Caribbean Assurance Brokers Loyalty Program will see even bigger and better partnerships, discounts and rewards which will result in more disposable income, massive savings and the overall success for all stakeholders and by extension, Jamaica, in terms of facilitating linkages with other sectors, which will help to generate sustainable growth momentum and overall economic stimulus.”

The post Caribbean Assurance Brokers Limited Loyalty Programme Official Launch appeared first on Caribbean Assurance Brokers.

With 11 employees at inception, CAB now boasts a staff complement of 108. The company has the largest international health insurance portfolio in Jamaica (ICHIP), as well as one of the largest broker-managed employee benefits portfolios (consistently ranking in the top three producing brokers for employee benefits and individual life insurance for Sagicor Life and Guardian Life). Its general insurance business continues to show remarkable and consistent growth, especially as it relates to its corporate and commercial lines.

Today, its combined team of dedicated professionals has over 400 years of experience in the insurance industry and has been trained to provide clients with the specialised services necessary to effectively and efficiently manage their portfolios of international health, life and travel insurance, employee benefits, local individual insurance, credit union Gold Series and general insurance programmes and the associated cost regimes at no extra cost to their clients. Specifically, its international health insurance, employee benefits, and general insurance teams comprise qualified insurance practitioners with expertise in risk-management solutions and claims administration. Having formed solid strategic alliances and partnerships with international broking operations and insurance providers in Britain and the United States (US), CAB provides access to all major world insurance and reinsurance markets.

CAB’s primary global partners are its correspondent London brokers, which, for the most part, are independent specialist Lloyd’s brokers based in the heart of London’s insurance sector trading with all of the major international insurance and reinsurance markets; its international health insurance partners, Lloyd’s of London, which has a reputation of excellence and leadership in the international medical insurance markets; and AETNA, one of the leading diversified healthcare benefits companies in the US. The commitment of the company to its customers is to consistently delight them by delivering the highest-quality service and the best value for money. CAB are cognizant of the fact that its clients have choices and, as such, the organisation must be guided by the principles of not merely satisfying but, indeed, delighting customers with first-class customer care. The team members, at all levels, are committed to this philosophy and are constantly striving for excellence.

With a philosophy of “The Team is the Theme’, decision-making throughout the organisation is based on consensus and the input of stakeholders. Through their consistent achievements and its regional thrust, the company has begun to realise its vision ‘to become the BEST insurance brokerage house in the English-speaking Caribbean by investing in their human capital; to seek out strategic alliances; to maintain the highest level of professionalism, integrity and competence; and to successfully meet the challenges of the changing insurance industry by being knowledgeable, prepared, solution-oriented and customer-focused’.

Coupled with its mission ‘to consistently delight their customers at each point of contact with the brand and to provide a rewarding environment for their employees’, CAB has embarked on a path to build loyalty and trust among its clients and employees.

One such delight is its recently introduced, innovative Caribbean Assurance Brokers Loyalty Programme, which was designed to reward customers by providing incredible savings from discounts given by its over 200 participating merchants and healthcare providers islandwide (including automobile dealers, hotels, restaurants, doctors, pharmacies, hospitals, medical labs, spas, salons, gyms and more! ), in addition to a partnership with Brawta Living through which customers obtain a further five per cent discount on all deals.

In June 2006, CAB’s Social Club Committee, geared towards developing future leaders, decided that part of its mandate would be to give back to the community in a very real way because it felt that as anew company, CAB needed to not only do well but also do good. It was felt that any contribution that CAB made towards national development would not only give great personal satisfaction to the staff but also generate a very positive response in the community in which it operated. Its staff decided that their contribution would be to the development of young minds, and so the Reddie’s Place of Safety, which has been a haven to orphans, as well as abandoned and abused youngsters, was chosen.

From left: Shenneil Edwards, manager, International Insurance Division, Caribbean Assurance Brokers Limited (CAB); Kim Brumet, strategic accounts manager, Seven Corners; Dale Willetts, executive VP, London Market Insurance; Raymond Walker, founder, chairman and CEO, CAB; and Natalie St Louis, strategic corporate consultant, CAB, and CEO, Strategic Konnections, at the recently held International Comprehensive Health Insurance Programme Symposium at the Knutsford Court Hotel.

CONTINUED PROGRAMME

The programme, which began in July 2006 and continues to this date, involves the provision of groceries to the home each month, along with several interactions with the children during the Easter and Christmas periods and doctor’s visits by CAB shareholder and former director, Dr Karen Rajpat. The children have become an integral part of the CAB team they actively participate in church services and have been on numerous field trips and other interactive activities with the staff.

CAB remains committed to the children of the Reddie’s Place of Safety as it believes that the success of Jamaica lies with the development of the hearts and minds of the nation’s youths.

The company has also demonstrated its innovativeness by saving on energy and ‘going green’ through generating its own energy and initiating other projects that have resulted in tremendous cost reduction and the protection of the environment.

From all that has been stated, itis without any doubt that this company will always stand out and be known and seen as the pioneer and innovator in the insurance sector.

There are many exciting things on the horizon that will take the company to the next level in the industry.

For more information, please call 876-619-1351 or visit www. cabjm.com today.

Learn the basics of Insurance

Insurance works by pooling risk. What does this mean? It simply means that a large group of people who want to insure against a particular loss pay premiums into what we will call the insurance bucket, or pool. Because the number of insured individuals is so large, insurance companies can use statistical analysis to project what their actual losses will be within the given class. They know that not all insured individuals will suffer losses at the same time or at all. This allows the insurance companies to operate profitably and, at the same time, pay for claims that may arise. For instance, most people have auto insurance, but only a few ever actually get into an accident. You pay for the probability of the loss and for the assurance that you will be paid for losses in the event they occur.

RISKS

Life is full of risks. Some are preventable or can at least be minimised, some are avoidable, and some are completely unforeseeable. What’s important to know about risk when thinking about insurance is the type of risk, the effect of that risk, the cost of the risk, and what you can do to mitigate the risk. Let’s take the example of driving a car.

Type of risk: Bodily injury, total loss of vehicle, having to fix your car.

The effect: Spending time in the hospital, having to rent a car, and having to make car payments for a car that no longer exists.

The costs: Can range from small to very large.

Mitigating risk: Not driving at all (risk avoidance), becoming a safe driver (you still have to contend with other drivers), or transferring the risk to someone else (insurance). Let’s explore this concept of risk- management (or mitigation) principles a little deeper and look at how you may apply them. The basic risk-management tools indicate that risks that could bring financial losses and whose severity cannot be reduced should be transferred. You should also consider the relationship between the cost of risk transfer and the value of transferring that risk.

RISK CONTROL

There are two ways that risks can be controlled. You can avoid the risk altogether, or you can choose to reduce it.

RISK FINANCING

If you decide to retain your risk exposure, then you can either transfer that risk (i.e. , to an insurance company) or retain that risk either voluntarily (ie. you identify and accept the risk) or involuntarily (you identify the risk, but no insurance is available).

RISK SHARING

Finally, you may also decide to share the risk. For example, a business owner may decide that while he is willing to assume the risk of a new venture, he may want to share the risk with other owners by incorporating his business. For risks that involve a high severity of loss and a low frequency of loss, then risk transference (i.e., insurance) is probably the most appropriate protection technique. Insurance is appropriate if the loss will cause you or your loved ones a significant financial loss or inconvenience. Do keep in mind that in some instances, you are required to purchase insurance (such as if you are operating a motor vehicle). For risks that are of low loss severity but high loss frequency, the most suitable method is either retention or reduction because the cost to transfer (or insure) the risk might be costly. In other words, some damages are so inexpensive that it’s worth taking the risk of having to pay for them yourself rather than forking extra money over to the insurance company each month.

THE RISK MANAGEMENT PROCESS

After you have determined that you would like to insure against a loss, the next step is to seek out insurance coverage. You may have many options available to you, but it’s always best to shop around. You can go directly to the insurer through an agent, who can bind the policy. The process of binding a policy is simply a written acknowledgement identifying the main components of your insurance contract. It is intended to provide temporary insurance protection to the consumer pending a formal policy being issued by the insurance company.

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Then in 1992, my older brother, fresh out of UWI’s medical school and brimming with enthusiasm on his nascent career, started to exhibit behavior which was unusual (even for him). During his internship In Trinidad, we received reports that he was misplacing patient charts and that he was forgetting where he placed items, We decided to conduct an MRI to check out whether everything was really in order. He was diagnosed with an inoperable malignant brain tumour. My parents were devastated. Two years later my brother died.

The post The importance of HEALTH insurance appeared first on Caribbean Assurance Brokers.

Then in 1992, my older brother, fresh out of UWI’s medical school and brimming with enthusiasm on his nascent career, started to exhibit behavior which was unusual (even for him). During his internship In Trinidad, we received reports that he was misplacing patient charts and that he was forgetting where he placed items, We decided to conduct an MRI to check out whether everything was really in order. He was diagnosed with an inoperable malignant brain tumour. My parents were devastated. Two years later my brother died.

The post The importance of HEALTH insurance appeared first on Caribbean Assurance Brokers.

Then in 1992, my older brother, fresh out of UWI’s medical school and brimming with enthusiasm on his nascent career, started to exhibit behavior which was unusual (even for him). During his internship In Trinidad, we received reports that he was misplacing patient charts and that he was forgetting where he placed items, We decided to conduct an MRI to check out whether everything was really in order. He was diagnosed with an inoperable malignant brain tumour. My parents were devastated. Two years later my brother died.

The post The importance of HEALTH insurance appeared first on Caribbean Assurance Brokers.