International Life Insurance

An insurance policy is a contract between you (the insured) and an insurance company (the insurer), in which the insurance company undertakes to take on the responsibility of 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.

Under the Motor Vehicles Insurance (Third Party Risks) Act of 1941, a minimum level of insurance is compulsory if you intend to operate a vehicle on Jamaican roads. Driving a vehicle that is not insured is an offence under the laws of Jamaica. Insuring your vehicle is a means of protecting yourself and giving you peace of mind as it provides coverage in the event of an accident, which can result in undue financial hardship.

A number of factors can affect the cost of your motor insurance – some of which you can control and some that are beyond your control. The type of car you drive, the purpose the car serves, your driving record, where you live and where the car is kept, can all affect how much your motor insurance will cost.

The vehicle can be used for your business purposes if the insurance company has been be notified of the change. This cover will attract additional premium.

This is a discount that is offered by some insurance companies, mostly general insurance companies. The discount is earned by an individual for having a claim-free/accident-free period of insurance. Usually your NCD increases in each year that you are insured and have not made a claim. However, there is usually a maximum set by the respective insurance company.

Homeowners Insurance covers loss or damage to your property arising from a variety of “perils” such as fire, hurricane, earthquake, flood and faulty plumbing. Homeowners insurance also provides personal liability coverage for you as the insured as it covers your liability to third parties in the event of your negligence. Oftentimes, homeowner’s insurance is required by a lender in order for one to obtain a mortgage.

If you insure your home for less than the full replacement value, in the event of a partial loss you would be subjected to the Condition of Average (otherwise called the Average Clause). Under this condition/clause in an insurance policy, if your assets were insured for less than their full replacement value, you will only receive reimbursement for a portion of the loss suffered. In order to fully benefit from property insurance, it is important that the sum insured is equal to the replacement value (the full cost to replace your property) of the property that you are insuring.

The excess/deductible is the first portion of a claim that you pay when making a claim. It is usually specified as a percentage of the value of the sum insured, though it may sometimes be a flat figure, depending on the type of policy. The Insurance Company will usually pay amounts over and above the excess figure, up to the sum insured.

A Term Life Insurance Policy provides a policy benefit if the insured dies during a specified period of time.