Closer scrutiny for car insurance
Some insurance companies will now be insisting on its personnel seeing vehicles before approving any coverage, on the heels of concerns that insurance had been given to non-existent vehicles.
The decision to tighten insurance procedures comes as the police Fraud Squad intensifies investigations into Executive Car Rentals and probes complaints from at least two auto finance companies about loans for vehicles that did not exist.
President of the General Insurance Association of Barbados Michael Holder made the disclosure at a Press conference today, even as he dismissed the perception that people could simply walk into an insurance company and walk back out with a cover note.
“The process of insuring a vehicle has its specific requirements and is certainly not a case of anyone coming to an insurance company, requesting to have a vehicle insured, and wallking out with a cover note of insurance without having met the requirements,” he asserted.
“Given that the pro forma invoice from the dealership or the valuation form the authorized garage has to be submitted, insurance companies would have taken the position that a vehicle to be insured has been inspected and valued. The vehicle therefore had to be seen.”
But Holder told reporters some companies would be more vigilant and require “that the vehicle to be insured must be seen by their personnel”.
In seeking to defend the sector’s reputation when it comes to providing coverage, Holder outlined the requirements for insuring vehicles in Barbados.
The required documents include: a completed proposal form which would provide information about the vehicle and its history, as well as the name and address of the owner; proof of address of the owner; proof of ownership; a copy of the owner’s identification card and valid driver’s licence; a valuation of the car; and, depending on the age of the vehicle, a road worthy inspection report from a dealership or an authorized garage.
The investigation that has brought the process of insuring vehicles to the fore has been making steady progress, with one man being questioned by police this week.
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