NUPW: Put brakes on planned increase in insurance premiums

The National Union of Public Workers (NUPW) President, Kimberley Agard, has come out in support of residents who have asked insurance companies to rethink and put the brakes on the planned increase in insurance premiums.

Recently the General Insurance Association announced that insurance premiums are set to rise very soon, but Agard said this news has not been an easy pill to swallow by most Barbadians. 

In a statement Agard said the Insurance Association has tried to justify the need for the increase by giving figures of increased claims and repairs.

But the NUPW President said she has asked them to share “the figures and profits from those plenty other insured persons who have never claimed whether for car, house or medical.

“There are just over 140,000 cars registered to use our roads, which means they are all insured, and it’s a small percentage of those that are the issue. People may get involved in fender benders and out of fear for the hammer being brought down on them by their insurance company, opt to drive the vehicle with the damage or fix it out of pocket.”

While noting that she supports the call for persons to be more careful on our roads in an effort to kept vehicular accidents and near misses to a low and for homeowners to secure and take necessary

precautions to prevent burglary or damage to property and for persons to live healthier lifestyles to reduce NCDs, Agard said her concern for citizens of Barbados is the effect the increase in premiums will have on them, especially those who are already challenged in making ends meet.

“Many persons are required by contract to have house insurance once they have a mortgage, persons are required to insure their vehicles and I’m sure that an increase in insurance will force persons to be delinquent and we may then see an increase in persons driving without insurance and plenty more uninsured houses,” Agard said.

“Some medical insurance clients by way of letter were already notified that their premiums will increase from February 1st, 2024. Those persons under that coverage who have recognized the need for medical insurance to ensure access to decent health services are being forced to pay under one package $20 more to as high as roughly $60 in others, including retirees.

“I know in any business the bottom line and profit margin are always to the fore and I am sure this instance is no different but a deeper inspection should be done and greater consideration be given to the socio economic impact that the increase in insurance rates at this time will have. Rates that have risen maybe at least three times in the not too distant past,” she added

The consumers sadly don’t benefit from the vast profit that the insurance industry makes, but regrettably are expected to share in the losses, Agard said.

(PR)