What You Should Know

Telephone: 242-394-5555
P.O. Box SS 6283
Rosetta Street
Nassau, Bahamas

IMB Providing You With Information You Need

Underinsurance and the Condition of Average

Most insurance policies that cover property contain a Condition of Average. There are exceptions and the position will be explained in your policy documentation, however, if you have any doubts or are unclear on the subject please do not hesitate to contact us and we will be happy to explain if and how this affects your particular policy.

The reason for this Condition is that the premium for the Policy is calculated on the basis that the property is being insured for the full replacement cost, not just the part of it. The sum insured should be fixed accordingly to reflect current building costs or replacement costs in respect of contents of your property. If the Sum Insured on the Policy has been calculated correctly then the Condition of Average has no effect whatsoever.

However, if at the time of a claim, it is found that the sum insured is less than the amount it should be, the property is said to be under insured and the Condition of Average will be applied reducing the amount that may be paid by Insurers.

Simply put, the Condition of Average states that if someone only insures for 50% of the correct amount only 50% of the loss will be met.

A more detailed explanation is available in a leaflet that can be obtained from the web page titled Downloadable Forms.

Excess and Deductibles

This is the first amount of any claim on a Policy. The Insured is responsible for paying this amount whether or not they are at fault for the accident or loss. Once the Insured has paid this amount, Insurers will pay the balance of the agreed loss up to a maximum of the sum insured.

The amount of Excess or Deductible can vary between different types of insurance and between different Insurers. Voluntarily increasing your Excess or Deductible can save you money.

Please ask one of our representatives if you require any clarification in respect of your own policy or wish to have a quotation with alternative deductibles.

Motor Insurance – complying with the law

For private motorists, the Road Traffic Acts of the Commonwealth of The Bahamas states that certain levels of insurance must be in place before a vehicle is used on the public roads. More extensive insurance is usually required for commercial vehicles carrying fare-paying passengers.

To evidence this, in addition to the Policy, a Certificate of Insurance will be issued and this should be kept in secure location as it will be required to licence the vehicle and will also need to be produced in the event of a motor accident. Failure to produce the Certificate of Insurance to the police authorities may lead to prosecution for driving without insurance.

Some Insurers charge an additional fee if a duplicate Certificate of Insurance is requested so it is a good idea to keep it in a safe place.

Please be assured that all Motor Insurance Policies issued by Insurance Management (Bahamas) Ltd provide more insurance cover than the minimum required by law.

Need to protect your home, business, or even the ones you love? Click here to get a quote on the insurance that best suits your needs.

Have you been in an accident? Do you need to submit a claim? Click here to view our claim forms and download the one you need.

Have a question about Insurance Management? Do you need more information regarding a policy? Click here to find out how you can contact us at Insurance Management.