Since Ms, Van Beek left, we are without an insurance regulator

Jun 28, 2017 Letters

Dear Editor,
I am happy that your columnist, Mr Gildharie, placed a very interesting article on insurance in your paper. We do need to have the authorities revisit the limits as set for motor insurance under the Act. The Third Party Act insurance damage limits are not any longer in sync with the realities of the day. However, the law states that persons can approach the courts if the damages stipulated are in any way insufficient for their case.
Dealing with the courts can be painful since these matters can take several years before even a hearing can be done. A close relative of mine is still to get a court date since she sued a big shot who struck her down with his car and then fled the scene. The accident took place early in 2002. To my mind the entire insurance industry needs revision. To begin with we must have a specific Regulator who will possess the required expertise and experience needed to regulate and control the industry. He/she will also be able to introduce innovations that will take the entire industry forward.
If we rewind we are going to see that since the departure of MS Van Beek, a former Regulator, we were visited with the placement of unauthorized investments that took down Clico and its policyholders as well as the funds of the NIS Scheme. Prudent regulation would have deterred Clico from making the investments that killed the company and also placed our NIS pension funds in jeopardy.
Further good regulation would ensure that we get worthy persons as agents and intermediaries for the interfacing with clients and potential customers. The provision of training for the license examinations should be a statutory something and not an examination sponsored by a trade association. In advanced jurisdictions the state provides and regulates the licensing process. Insurance companies sponsor their individual candidates for these examinations. With respect to continuing education for operatives in the industry, the state also controls this matter even though the providers of the instructional content might be authorized private entities. Candidates for licensing and continuing education classes must spend fixed times on instruction programs.
When persons wish to replace their original policies there is a given process that is involved. An agent or intermediary cannot just write up a person for a particular policy and then allow that same person to surrender an existing policy. Cogent reasons must be provided before a surrender can be entertained. Thus agents and intermediaries are prevented from abusing the process of insuring persons. Statutory penalties are provided for those operatives who attempt to abuse the system.
Cyril Walker

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