Three in ten crashes involve unlicensed or uninsured drivers – insurance CEO

Barbados is averaging around 15 road accidents every day — a crash rate so severe that a senior insurance industry executive warned insurers can no longer absorb the ballooning losses, even as motorists complain about high premiums.

But Barbadians should count themselves fortunate premiums have not risen further, given the magnitude of losses now being absorbed by the industry, said chief executive officer of Co-operators General Insurance Company, Anton Lovell.

“This company, Co-operators General Insurance, we are experiencing an average of seven to eight accidents daily. But islandwide, you can safely estimate that there are about 15 accidents daily recorded in Barbados, and that is not sustainable,” Lovell said in an exclusive interview with Barbados TODAY.

“But certainly, in my view, the premiums are extremely reasonable when you consider the number of accidents and the resulting cost of these accidents.”

The average repair bill per collision was about $10 000, while accidents involving injuries routinely doubled that figure, he said.

When multiplied across at least 15 crashes daily, the impact on insurers and the wider economy was severe and deeply concerning, Lovell added.

He pointed to pressure on foreign exchange, as most replacement parts had to be imported, and to growing strain on the Queen Elizabeth Hospital.

“These accidents involving injury put pressure on the QEH. People complain about not being attended to at the hospital, but you can understand the pressure that the hospital is facing when you have this level of accidents.”

In three out of every ten accidents, the vehicles involved were either uninsured or the drivers unlicensed, according to the insurance executive.

Uninsured vehicles and unlicensed drivers were a major problem, noting that a significant number of these crashes involved motorists operating outside the law.

That situation, he explained, leaves innocent third parties to absorb heavy financial losses. “The pressure that they put on the innocent third parties when this occurs, persons are left to personally finance losses, when they are unable to do so, whether to repair their own vehicles or meet unexpected medical expenses,” Lovell said.

Expenses for medical reports, physiotherapy, MRI scans and X-rays had increased sharply over the past five to six years. “All these costs have increased, so obviously that would put persons under severe hardship when they are involved in accidents with uninsured vehicles or unlicensed drivers,” he said. Police data highlight the scale of the issue.

In December last year, of more than 180 000 registered vehicles in Barbados, about 50 000 were uninsured or untaxed.

Despite the risks, Lovell noted that there is currently no legal requirement for drivers to carry proof of insurance in their vehicles — a gap he has long argued must be addressed. “That is something that I was pushing for some time,” he said, calling for legislation to require motorists to carry valid insurance certificates or cover notes so police can verify coverage during traffic stops and at scenes of accidents involving injury.

He suggested that drivers who fail to produce proof of insurance should be prevented from continuing their journey. “When drivers cannot produce these certifications, the police should have some dedicated area where they could tow the vehicle away and not allow persons to continue,” Lovell said, adding that vehicles could be reclaimed once valid documentation is produced.

Reckless driving behaviour — including speeding, improper overtaking, distracted driving and impatience — was compounding the crisis, said Lovell. He noted that Barbados had been spared even higher fatalities “only by the grace of God”, given the levels of recklessness on the roads.

As part of the solution, Lovell renewed his call for the introduction of a traffic school focused on defensive driving, which he said could serve as an alternative to court appearances for certain offences.

Defensive driving education could help reduce repeat offending and allow motorists to better understand the risks they pose to themselves and others, he suggested, adding that completion of such programmes could also be linked to incentives, including possible insurance discounts.

While public attention often focuses on the bad reputation of public service vehicles, Lovell said private motorists were equally responsible for many of the crashes. He urged drivers to adopt a more cautious approach and to drive defensively.

Lovell also addressed criticism of insurance companies, stressing that insurers face the same economic pressures as other businesses.

“Somehow people figure insurance companies operate not to make a profit,” he said. “But we operate like any other commercial entity, having to cover operational expenses and pay government taxes.”

He asserted that despite the increasing frequency of vehicle accidents, insurers had sought to keep coverage affordable and accessible through the payment of premiums by instalments.

“We try our best to ensure the premiums are affordable to all,” Lovell said, adding that ensuring broad coverage was critical to company policyholders and protecting innocent third parties.

Many motorists are also unaware of the level of protection provided by their motor policies, Lovell said, pointing out that by law, insurance companies are required to provide coverage of up to $10m for any individual injured and up to $30m in aggregate in a single accident.

Lovell said the insurance industry would continue to do more to educate the public, but warned that without stronger enforcement, improved driving practices and road safety programmes, the current trajectory would continue.

He added that he had long advocated for breathalyser testing to be enforced as another measure to reduce crashes, noting that emergency responders frequently recognise that a number of these accidents are caused by people under the influence.      sheriabrathwaite@barbadostoday.bb