Gov’t Could Step In To Force Faster Post-hurricane Insurance Payouts | RJR News

By Nakinskie Robinson  

The government says it may use its legislative authority to force faster insurance settlements, amid the slow pace of payments for Hurricane Melissa claims.

This, as scores of policyholders are still awaiting insurance payouts almost a year after Hurricane Melissa caused severe damage to several structures, including businesses and homes. 

Private property and business claims have encountered a major bottleneck. 

There have been reports of a settlement target set for the end of September – 11 months post Melissa.

Prime Minister Dr. Andrew Holness says the slow pace of payments remains an obstacle in the restoration process.

“The recovery of the private sector from Hurricane Melissa is being hampered by the slow pace of insurance payments to persons who have made claims on the insurance companies, legitimate claims that have been successful. 

“I have gotten so many complaints but there is very little that we can do as a government to intervene in a private matter. Legislatively we could and we probably should, and I’m happy that the Leader of the Opposition is pointing that out, but we have gotten too many complaints and we see that it is actually having a negative impact now on the recovery. The recovery could have been much faster were the insurance payments made with speed and alacrity,” contended Dr. Holness.

He was speaking during the official launch of the Jamaica Reconstruction and Resilience Oversight Committee (JAMRROC) on Wednesday morning.  

After private property owners expressed frustration, the Prime Minister in June appealed to insurers to pick up the pace. 

The Financial Services Commission intervened working alongside the Insurance Association of Jamaica, and the Jamaica Insurance Brokers Association to assess the situation. 

In a statement last month, the FSC said the three met and assessed the progress in settling claims, identified impediments and agreed on measures intended to improve outcomes for policyholders. 

It is unclear the volume and complexity of claims arising from Melissa, however, total insured losses are estimated between US$2.2 and US$4.2 billion.