July 23, 2012, St John’s Antigua – Word that LIAT will, on its own, have to cover 10 million dollars in costs related to last month’s fire has brought a warning from Insurance Association Chairman Edwin Ambrose.
LIAT Chairman Dr Jean Holder and shareholding Prime Minister Dr Ralph Gonsalves have said the burden comes as the damaged property was underinsured.
Ambrose warns that without constant monitoring of insured assets, the same fate could befall all with property insurance, whether business or individual.
He says it’s not enough to get a proper valuation when first buying a policy and that maintenance of the policy should go beyond paying annual premiums:
Ambrose’s recommendation is for individuals to conduct re-valuations every 3 to 5 years and for companies to do them annually, especially companies with frequent asset purchases and expansions.
Ambrose also answers the oft repeated criticism that insurers are quick to sell policies but fail to explain pitfalls at the beginning of the relationship.
He says that customers have to accept responsibility for ensuring the correct value is presented to the insurer.
Insurance Association Chairman Edwin Ambrose….