Insurance companies have settled over 8,000 Melissa-related claims, paid out $54B -- IAJ

Local insurance companies have settled 8,357 Hurricane Melissa-related claims and paid out $54.35 billion nearly a year after one of the most powerful storms in Jamaican history left a trail of death and destruction across several parishes.

That’s according to the latest figures published by the Insurance Association of Jamaica (IAJ), which showed that up to the end of last month $51.9 billion was paid to settle claims related to residential and commercial properties and $2.3 billion for motor vehicle-related claims.

Commercial properties accounted for $41.6 billion or 80 per cent of claims under this category while residential properties accounted for $10.3 billion, the IAJ data revealed.

A total of 983 claims remain outstanding, with claims related to residential and commercial properties accounting for 740.

The disclosures come amid public concerns about several issues, including the time being taken by insurance companies to resolve some claims and questions surrounding settlement calculations, deductibles, property valuations and the application of the average clause.

The data shows that insurance companies paid over $40.1 billion to cover property-related claims across the five parishes hardest hit after the category five hurricane last October.

St James accounted for $30.5 billion, followed by Hanover with $3.5 billion, Westmoreland with $2.94 billion, St Ann with $1.75 billion and St Elizabeth with $1.43 billion.

“It’s important to highlight that St Elizabeth, one of the parishes hardest hit by Hurricane Melissa, has a low level of insurance penetration. Consequently, despite the extensive damage sustained, the parish has recorded low insurance payouts,” the IAJ explained.

The association disclosed that 45 per cent of engineering claims remain outstanding, explaining that this is the most challenging category due to the complexity of assessments and settlement requirements.

It noted, too, that insurance companies have made interim payments on 205 outstanding property and engineering claims “reflecting ongoing efforts to provide financial support to policyholders while final settlements are being pursued.

-- Livern Barrett

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