Frequently Asked Questions

Motor Vehicle

• 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 however it does not cover your damages.

• What is Comprehensive Insurance?

  A Comprehensive policy covers your vehicle against loss or damage by collision, fire, theft or malicious acts. Also covered are extra perils (for example, acts of God such as flood, hurricane etc.). Comprehensive Insurance also covers your liability to a third party in the event of an accident.

• Who can drive my vehicle?

  If you have 'Open Driving' on your policy, any licensed driver is insured to drive your vehicle with your permission. If the driver is under the age of 23, or has been licensed for less than 12 months, an additional excess will be charged. Please note that if any member of your household is under 23 or has been licensed for less than a year, we need to know about it before you allow them to drive your car. You can also buy a 'Restricted Cover' policy, which limits you to two named drivers, for a discounted premium.

• 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% after five (5) 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.

• How does the no claim discount work?

  This is a discount you earn for not making a claim under your policy. As long as you do not make a claim it increases annually until it reaches a maximum percentage. It is important to note that even if you are not at fault in an accident, once you have made a claim, your discount will be reduced. It will be reinstated if we recover our expenditure. Accident free driving is the best way to keep your premiums at a reasonable level. Your No Claim Discount is not transferable to another person. However, you can transfer it from one of your vehicles to another one owned.

• What are the general issues that "load" the cost of my policy

  There are a few issues that may cause increases in the price of an insurance policy.
  They are as follows:

  1. Is your driver's licenses under one year old
  2. Are you under 21 years old
  3. Do you have a reported accident in the last twelve months
  4. Are you a salesperson or have a job that requires a lot of driving
• How can I minimize the cost of my insurance?
  1. You can agree to bear a larger percentage of each claim should any occur.
  2. You could restrict the driving of your vehicle to three named persons.
  3. You have other policies with the company.
  4. If you insure all your vehicles with one insurer you will be entitled to other vehicle discounts.
  5. Maintain a good driving record.
  6. You could get a discount for maintaining you vehicle in good condition.
  7. You are the member of a professional or group organization.
  8. Avoid vehicles modified for speed.
• If I am insured under a private motor cover, can the vehicle be used for business?

  The vehicle can be used for your business purposes provided we are informed of the change in use. This may attract an additional premium.

• If my windscreen is damaged, will a claim affect my no claim discount?

  If there is breakage of glass but no other damage to the vehicle, your policy covers you up to a specified amount. Claiming will not affect your no claim discount nor will it be subject to an excess.

• Are accessories like CD players covered by my motor car policy?

  If you have Comprehensive cover, factory accessories are included in the cover. If you have an after-market stereo, rims or other accessories, you should let us have a list of the accessories and their cost at the time you are taking out the insurance. Without such a list, if you suffer a loss you may only be entitled to the cost of standard equipment.

• Why do I need an annual valuation for my vehicle?

  The value of your car changes over time (it normally depreciates). In the event of a total loss, the amount paid by the company will be the value of the vehicle immediately prior to the accident, or the sum insured - whichever is less. For example, if you buy your car in 2006, and it is written off a year later, the value is likely to be less than what you paid for it. Annual valuations help us to ensure that your policy is kept up to date with these changes in value.

• What is the difference between a valuation report and an engineer's report?

  A valuation report establishes the value of the vehicle and an engineer's report speaks to its general condition and roadworthiness.

• Is my motor vehicle insured while it is being serviced?

  Yes, it is covered whilst it is in the custody of a motor trader.

• If I have restricted cover (named driver/s), in the event of an emergency, if someone who is not named drives the car, am I covered?

  No. A claim will only be paid if named driver/s are driving the vehicle.

• If I lend my car to someone, are they covered?

  As long as they have a valid driver's licence your car would be covered. Limitations in respect of excess (deductible) would apply if the driver is under age or have had their driver's licence for less than 12 months. Also the cover would only be applicable while the car is being used for Social, Domestic, or Pleasure purposes.

• I wish to modify my car to boost its performance will it affect my premiums?

  If you decide to modify your car to make it more powerful or faster we need to know. Unfortunately, such modifications increases the risks associated with your car and consequently the premiums. If we are not aware it is not covered under your policy.

• Why do I have to give the names of the persons who will drive my car when I want open cover?

  In our efforts to evaluate your risk exposure it is important for us to know the ages, driving experience, claims experience and occupations of your drivers. The data we have collected over the years allows us to analyse the risk.

• I have purchased Comprehensive Cover however the top of my certificate mentions Third Party Cover. Why?

  The law, which makes motor insurance compulsory, is called the Motor Vehicle Third Party Risks Law. The reference to third party is simply acknowledging that you have satisfied the legal requirements.

• Does my policy provide a grace period?

  No. The Law specifically prohibits us from granting you a grace period. Your cover expires at midnight on the date stated on your Certificate of Insurance. Therefore, if the day after the expiration of your cover is a weekend or Public holiday you must ensure your cover is renewed early.

• Is it a problem if I insure my vehicle for private purposes and during the period of cover I begin to use my vehicle in my business?

  If you decide to modify your car to make it more powerful or faster we need to know. Unfortunately, such modifications increases the risks associated with your car and consequently the premiums. If we are not aware it is not covered under your policy.

Property

• What information do you need to take out Property insurance

  Replacement Value of the Property.
  This can be done by one of the following:

  1. Valuation Report - recommended choice
  2. Checking with realtors for current replacement values - as a guide only
  3. Checking the Master Builders™ Association for current rate per square foot then calculate based on sq. ft rate x size of building – as a guide only
• How can I minimize the cost of my insurance?
  1. You have a sprinkler system, alarm system or you've updated major systems in an older home
  2. You have other policies with the company
  3. You are the member of a professional or group organization
• What Is Average Clause

  Your responsibility is to insure your property for its full replacement cost. When you do not do this and insure for less than the replacement value, we consider that you have “self insured� the difference. If there is a claim, we share the cost of the claim with you in the same proportion that you have self-insured. That is, if you have insured for 50% of the value, then you have self-insured the other 50%. When you have a claim you are responsible for absorbing 50% of the claim and we pay the other 50%, less the policy excess.
  
  WE DO NOT RECOMMEND THAT YOU SELF INSURE, as the application of the average clause can be detrimental to your ability to recover after a loss.

• What can I insure?
  1. House
  2. Contents
  3. Building under construction
  4. Computer
• How do I benefit from Insurance

  There are several benefits to you which include:

  1. Protection against claims arising from Legal Liabilities (Employers, Public and Personal)
  2. It is a Legal Requirement for Mortgage and Lien
  3. A means of Financial Compensation
  4. Transfer of risk which results in better security, peace of mind and quick recovery from a loss
• Who can Insure

  Insurance is normally sold to the owner or authorized agent of an item.

• What are the Standard Excesses

  Home Owners Policies
  Fire	No Excess
  Burglary	Flat $10,000
  Windstorm, Earthquake, Flood, Hurricane	2% of sum insured
  Burst Pipe	$10,000
  Impact/Collision	$10,000

  For example: House Insured for $6,000,000
  Loss by Hurricane amounting to $400,000
  You absord $120,000
  Excess is 2% of S.I. of $120,000
  NEM pays $280,000

• Why is there an Excess?
  1. To reduce the cost of insurance.
  2. To protect your asset by ensuring you exercise due caution, bearing in mind that you will have to cover some costs.
• What factors impact the insurance rates?
  1. The rates and terms imposed by re-insurance companies.
  2. The claims experience in Jamaica, the Caribbean & internationally.
  3. The location in which the property is located.
  4. Whether or not the area is subject to social unrest, flood prone or other adverse exposures.
  5. The type of construction. Eg. Roof and walls.
  6. The clients previous claims experience.
• If I own a home and it is rented to tenants, can the occupants insure their personal effects?

  Yes. Your tenants are free to insure their contents.

• Why do I need to insure my property at replacement value?

  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. Under this condition if you have a claim for partial loss, what you would receive from the Insurance Company would be the same percentage of your loss as your sum insured is to the true replacement value, minus any excesses that are applied under this policy. E.g. your sum insured is 60% of the replacement value, you would be paid 60% of the loss, minus the excess.

• What is the difference between "Market Value" and "Replacement Value"?

  "Market Value" is based on what a willing purchaser would pay a willing vender. This value could fluctuate significantly depending on the state of the economy, the housing market etc. "Replacement Value" is what it would cost to rebuild your house.

• If my home is rented to third parties, does it attract an additional premium?

  No. However, if you have rented your home fully furnished and have the contents insured with us, we will need to be informed of this and to have information on your tenants.

• What is included under Homeowners Insurance?

  Homeowners Insurance covers loss or damage arising from a variety of "Perils" such as fire, hurricane, earthquake, windstorm, flood, impact, burst pipes etc. It also includes cover for your liability to third parties in the event of your negligence. Please consult us or your broker/agent for full details.

• What about my furniture, appliances and other possessions?

  You can include the Contents of your home in your policy. They will be covered against the same range of perils and also theft. Please note that theft cover is only available for items contained inside buildings.

Claims

We hope it never happens, but where a dispute exists with the Insurance company, you will be happy you bought insurance through Crichton. We know insurance, and we will defend your rights. Your reason for buying insurance in the first place is to ensure that your claims are settled speedily and fairly if the need ever arise, something we never forget.

Please see the topics below for more information for proceeding with claims.

• Motor Vehicle Theft
  1. Report the loss to the police within twenty-four (24) hours.
  2. Complete and sign the claim form.
  3. Submit all original documents – registration certificate, fitness certificate and endorsed certificate of title.
  4. An investigator will be appointed. This usually takes, on average, four to six weeks to be done.
  5. A recommendation for payment will be made by the investigator/assessor.
  6. A release for payment will be prepared, for signature by you.
  7. A cheque will be prepared within five to ten working days.
  8. A recommendation for payment will be made by the investigator/assessor.
  9. If the vehicle is recovered, the loss is treated as an own damage claim and steps 4 to 7 of the Own Damage Claim steps would now need to be followed.
• Windsheild

  This covers damage to the windscreen where there is no other damage to the vehicle.

  1. Procure a pro forma invoice from the windscreen repairer and present to our offices, along with the vehicle, for inspection. (Some Insurers request that the vehicle be taken to them. Please call for further details.)
  2. Vehicle documents should be presented and the claim form completed and signed.
  3. Authorization of repairs for the windscreen damage, will be prepared within three working days (if all information and documentation is submitted).
• Accident
  1. Do not accept liability for any accident that occurs, even if you consider yourself at fault.
  2. Obtain information on the other person involved in the accident:
     • Name of the Owner of the vehicle
     • Licence number of the vehicle
  3. Report the incident to the police within 24 hours of the incident.
  4. Complete and sign the claim form and submit along with the estimate of repairs. (The estimate of repairs should come from the garage which will effect repairs to your vehicle.)
  5. An assessor will be appointed, to whom the vehicle should be delivered for assessment. If the vehicle cannot be driven, the assessor will make an appointment to come and assess the vehicle.
  6. After assessment, recommendation for payment will be made and an authorization for repairs will be prepared for the garage or a release for payment will be prepared, for signature by you.
  7. If a release for payment was prepared, a cheque will be prepared within five to ten working days, depending on the Insurer.