CAR IN­SUR­ANCE

Jamaica Gleaner - - 8-DAY YEAR-END SALE FEATURE -

An in­sur­ance pol­icy is a con­tract be­tween you and an in­sur­ance com­pany, in which they prom­ise 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.

WHY MOTOR IN­SUR­ANCE?

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 the Jamaican roads. Be­ing caught driv­ing a ve­hi­cle that is not in­sured is an offence. In ad­di­tion, it is 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.

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 your in­sur­ance com­pany im­me­di­ately.

WHAT IS THIRD-PARTY IN­SUR­ANCE?

If you neg­li­gently cause in­jury to or dam­age the property of other mo­torists, pedes­tri­ans, pas­sen­gers, etc, you will have a le­gal li­a­bil­ity. Third party In­sur­ance re­lieves you of this li­a­bil­ity by pay­ing th­ese claims on your be­half.

WHAT IS A NO-CLAIM DISCOUNT?

This is a discount that you can earn for not mak­ing claims un­der your pol­icy. Pro­vided you do not claim on your pol­icy, this discount will in­crease at each re­newal up to a max­i­mum of 60 per cent af­ter five years. If a claim is made, your discount will be re­duced, but can be re­in­stated if it is proven that you were not at fault, and we are able to re­cover your losses from the third party’s in­surer.

WHAT IS AN IN­SUR­ANCE POL­ICY?

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