Dear Editor,
It is time for the Government regulatory bodies to step in and rein in the insurance industry. On the one hand, while commercial banks engage in frolics of their own, harassing customers with silly rules that make no sense whatsoever, as Freddy and Craig have written about; on the other hand, we have the auto insurance industry harassing insurers who have faithfully paid their premiums, but when it’s time for them to settle with you when accidents happen, it’s an ongoing nightmare of delays, run around, and slow-motion responses.
Government must step in now and stop the abuse by insurance companies taking advantage of people. Some regulatory body seems asleep at the wheel.
People tell me they carry basic liability insurance because it will not make a difference if you have full comprehensive and collision coverage, because insurance companies try not to pay you full benefits in a timely, urgent manner. Vehicle owners say since insurance companies would take an inordinate amount of time to process your claim, and then give you very little, they prefer to carry the paltry liability insurance and pay for their own repairs, or pay the other party for any damages done.
In accidents, people make arrangements to settle without involving their insurance providers or the police; so, essentially, auto insurance companies are collecting premiums but they will not be paying out much for repairs, since many people will not file claims due to the frustrating process they have to deal with.
That’s a free ride for the insurance companies, who consequently make huge profits and laugh all the way to the bank.
I heard the story of someone with comprehensive and collision coverage who had an accident on November 9, being told to expect settlement in February 2025. What nonsense is that? What is this person supposed to do between now and February next year? Is this how the insurance company’s hand holds your hand when you are at your greatest moment of need? That is so sad, but that’s how most insurance companies treat their clients, and the regulatory bodies let that state of affairs continue for too long. Who is minding the store?
In the USA, insurance companies take delight in knowing that, when you have an accident, they respond speedily in your time of need and distress. You can get a settlement cheque in 2 days, plus you can get a rental car provided until your car is fixed, if you have rental coverage. An insurance adjuster would be sent speedily, probably on the same day or on the next day, to assess your damage so that settlement can be made quickly. Their customer service orientation is to make it as painless and stress-free as possible.
In Guyana, it is not so. You are made to beg and beg for responses, and they give you the run-around hoping to frustrate you. In the USA, the Insurance Commissioner would deal with the companies if they were not processing claims speedily. Does Guyana have an Insurance Commissioner? Does our Insurance Act need revision and reform? Which Ministry is responsible for insurance monitoring? Let’s give some urgent attention to this matter of the processing and payment of auto insurance claims!
Sincerely,
Dr Jerry Jailall
