Jamaica Insurance Information

CIA link to demographic/economic data on Jamaica

General Jamaica Insurance Information

• Compulsory Insurance:
  
  1. Third Party Automobile Liability;
  2. Workers’ Compensation (Part of Social Security Scheme).
• Non-Admitted Insurance:
  Prohibited except in the event that coverage is not available or local capacity is insufficient.
• Policy Wordings & Rates / Tariffs Controlled:
  Forms must be submitted for approval to the Superintendent of Insurance. Minimum rates for Property Damage / Business Interruption policies. Catastrophe perils are subject to a 2% deductible to Property Damage.
• Policy Language:
  English.
• Types of Insurance Restricted to Government Institutions:
  Workers’ Compensation.
• Policy Currency:
  Jamaican dollar (JMD). U.S. $ insurance available for property coverage with approval from the Superintendent of Insurance.
• Currency Restrictions / Exchange Controls:
  Premiums paid in Jamaica can be remitted in either Jamaican or American Dollars.
• Policy Period:
  Annual though longer term policies can be written at a discount. Long Term Agreements (LTAs) are available with approximate discounts of 5% for 3 years and 7.5%-10% for 5 years.
• Cancellation Provisions:
  30 day written notice is standard practice.
• Premium Tax, etc. paid by Insured:
  All coverages are subject to a small Stamp Duty JMD200 – VAT 16.5%. (Note: There are no longer any withholding taxes on premiums paid overseas for insurance or reinsurance.)
• Insurance Companies:
  Mostly coverages must be written and issued by Jamaican registered companies. The exception would be when coverage is not available in the local market.
• Brokers:
  This is mainly a broker market though agents operate usually representing one or more Insurers.
• Brokerage Commissions:
  Fire - 15%;
  Automobile - 12.5%;
  Personal Accident - 10-15%.
  Note: Commissions can be paid to brokers not registered locally.
• Broker of Record Letters:
  Expected but not regulated.
• Reinsurance:
  Foreign cessions of reinsurance requires the approval by the Superintendent of Insurance to approach the Bank of Jamaica for foreign exchange in order to make premium payments to reinsurers.
• Local Natural Hazards:
  Earthquake, hurricane.
• Other Information:
  

Property Insurance

• Fire:
  Standard fire perils include - fire, lightning, aircraft, explosion, earthquake, flood, storm / tempest, burst water pipe, riot / civil commotion. Malicious damage, windstorm / hurricane, vehicle impact. Note: Coverage for looting is individually endorsed and an additional premium is charged.
• All Risk:
  Coverage is available on a selective basis. Readily available for Builders Risk, Contractors Equipment and Machinery Installation.
• Coinsurance:
  All property policies are subject to Average/Underinsurance Clause (per UK practice/wordings). This means pro rata settlement if Sums Insured are less than Values at risk. (Note: sounds like 100% coinsurance). The only exception are Domestic policies where 85% Average is now the norm.
• Blanket Insurance:
  Available.
• Business Interruption:
  UK Loss of Profits is the usual form though U.S. Gross Earnings is available.
• Replacement Cost:
  Available.
• Discount for fire protection equipment / systems: Rate reduction available (minimal).

Boiler & Machinery / Machinery Breakdown / Engineering

• Wordings:
  UK and U.S. Comprehensive including breakdown but excluding explosion. Inspections are mandatory.

General / Public Liability

• Available Wordings:
  Comprehensive General / Public Liability including Product Liability, Contingent Automobile Liability, etc.
• Comments:
  Product Recall coverage is not available. Policies are written on an occurrence basis.

Automobile / Motor

• Compulsory Limits:
  Bodily Injury J$750,000/ person; J$2,000,000/ accident; Property Damage: Minimum J$20,000.
• Comments:
  Insured and any licensed individual driving the Insured’s permission are covered under the policy. Passengers are covered as they are deemed to be Third Parties.

Workers’ Compensation

• Comments:
  Most employees in Jamaica are covered under the Social Security Scheme. For those not protected thereunder, a separate Workers’ Compensationpolicy may be written. Extra-Territorial benefits are not included for employees working abroad. Medical Expenses and Occupational Disease benefits are payable under the Scheme. Employees have the option to sue.

Marine

• Available Wordings:
  American and Institute of London Underwriters. War Risks rates follow London scale.

Crime

• Available Coverages:
  U.S., UK and local.