Sinclair calls for insurance laws to tackle claims delays

Government Senator Charles Sinclair is urging the administration to review the Financial Services Commission and Insurance acts and their regulations to address, among other things, lengthy delays in the settlement of claims.

An attorney-at-law, Sinclair lamented the challenges being faced by policyholders and third-party victims when they submit claims to the suppliers of general insurance.

He commented on instances in which private and public buildings remain in a state of disrepair owing to delayed payments.

“There is one particular lady who has given up on trying to recover her claim as she is not prepared to take on the challenge in the Supreme Court,” he told members of the Upper House.

According to Sinclair, policyholders faithfully paid their premiums for years without making a claim and the instalments were gladly received by insurance companies.

However, he said when disaster strikes – as in the case of Hurricane Melissa – policyholders should not have to mount a second battle to receive the protection promised by the policy.

“The insurance provider must respond promptly to claims submitted by the policyholder. They must act with alacrity and efficiency in undertaking any investigations they deem necessary, and once liability is established effect payment without delay,” Sinclair stressed.

He insisted that policyholders or consumers of the service provided by the insurance carriers should be protected.

The government legislator argued that in other jurisdictions, legislation has been drafted to ensure prompt payment of claims by creating timelines and standards.

ADOPT APPROPRIATE PROVISIONS

He wants Jamaica to adopt appropriate provisions from statutes in other jurisdictions to more effectively tackle the challenges faced by persons who make claims on insurance companies and face inordinate delays in receiving payment.

Sinclair was debating the Jamaica Consumer and Competition Authority Act 2026, which is intended to consolidate the mandates of the Fair Trading Commission and the Consumer Affairs Commission under one authority.

The bill is in keeping with the Government’s rationalisation policy to create a leaner, more efficient public sector, reduce duplication of services, and cost cutting.

Sinclair said his reading of the bill suggests that the amalgamated entities can investigate, summon and resolve disagreements between consumers of insurance service and have matters referred to a tribunal established under the proposed new entity.

However, he noted that if the proposed new authority is unable to address the concerns, he raised then they would fall squarely within the remit of the Financial Services Commission.

Sinclair has echoed earlier calls for the Ministry of Justice to increase the monetary jurisdiction of the parish court from $1 million, which has been the limit over the past 13 years.

“It’s high time that the minister of justice brings the resolution for affirmative approval to increase the monetary jurisdiction of the parish court to $5 million,” he said.

According to Sinclair, the parish court gives the small man greater access to justice, adding that “it’s high time we make the adjustment to allow them to recover their full claim without having to abandon any part of their claim”.

Debate on the bill was suspended and is expected to continue at a later date.

edmond.campbell@gleanerjm.com