GK In­surance de­vel­ops Liveli­hood Pro­tec­tion Pol­icy plan

Jamaica Gleaner - - SOCIAL -

Farm­ers and per­sons liv­ing in ar­eas that are sus­cep­ti­ble to catas­tro­phes can ben­e­fit from in­surance cov­er­age un­der a pol­icy de­vel­oped by GK In­surance.

The Liveli­hood Pro­tec­tion Pol­icy (LPP) cov­ers loss of in­come due to heavy rains or high wind speed.

As­sis­tant man­ager in charge of strat­egy and busi­ness Sup­port at GK In­surance, Jor­dan Tait, said the scheme is aimed at mit­i­gat­ing the ef­fects of nat­u­ral dis­as­ter, par­tic­u­larly in vul­ner­a­ble com­mu­ni­ties.

He ex­plained that the prod­uct is a para­met­ric in­surance. Un­like tra­di­tional in­dem­nity in­surance that cov­ers a pol­i­cy­holder's ac­tual loss, para­met­ric in­surance pays out in re­sponse to de­fined trig­gers. This means the in­surer can quickly es­tab­lish how much it owes the pol­i­cy­holder, pro­vid­ing faster, smoother pay­outs.

Tait said that GK In­surance adopts a method that is used glob­ally where "we iden­tify a thresh­old of wind speed or an amount of rain­fall within cer­tain ge­o­graph­i­cal lo­ca­tions and once this thresh­old is ex­ceeded there is a pay­out.

"Af­ter a dis­as­ter when you have to go out and as­sess dam­ages, this will ul­ti­mately take a longer time to get com­pen­sa­tion, which will slow down the re­cov­ery process. This method will speed up the re­cov­ery process sig­nif­i­cantly," he pointed out.

The an­nual pre­mium un­der the LPP ranges from $6,600 to $66,000, while cov­er­age ranges from $50,000 to $500,000.

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