LETTER TO THE EDITOR

Excellent assessment of ‘under-insurance fraud’

Friday, October 29, 2004

Dear Sir:

I stand behind Barrie Quappe all the way, in her excellent assessment of the situation that Caymanians are facing with the “You are under-insured” fraud being perpetrated by the insurance companies. 

I know of one insurance company in Grand Cayman that requires their customers to now sign a paper, when they renew their insurance, stating that they are aware that they are under-insuring their home. Unless you are a billionaire that can insure your home for ten times the amount it will take to rebuild it, you can never have your home fully insured. 

Even then, they would probably say that it was under-insured, even though you re-insure it every year, and most of us do increase our coverage each year. To make three deductions from the claim of the person insured, is nothing short of criminal. 

They first deduct for having it “under-insured” (in their estimation), and then they deduct the 2% deduction amount, and lastly, they deduct for the age of the item being replaced (this is when there is not a full loss of the home). 

What they are doing is, as Barrie puts it, wrong, and I call it what it is... fraud... a criminal offence.

Naomi D. Oyog

  Back...