Details of deferred insurance premiums revealed

More details stipulating exactly who is exempt from paying insurance premiums and under what terms have been revealed in the latest amendments to the government’s Emergency Powers Orders.

The original order made by Prime Minister Dr. Hubert Minnis last month lacked such details, and only announced the suspension of the obligation of policyholders to pay any insurance premiums from March 17, 2020 for the duration of the state of public emergency and extending a period of 60 days thereafter.

According to these new changes, this mandate only applies to people who are unable to pay the premium as a result of losing their jobs due to COVID-19 emergency lockdown measures, or those who are unable to access electronic or any remote means to pay the premium.

Additionally, those who were capable of paying insurance premiums electronically or remotely before March 17 and have access to paying premiums in such ways, are not exempted from making payments.

Earlier this month, local life and health insurers were angered by the prime minister’s initial announcement and questioned the government’s constitutional authority to implement such a broad-sweeping measure.

The listed insurance policies covered under the order include group, general, health and life.

During that 60-day period following the public state of emergency, any deferred premiums are to be paid, or the insured and insurance provider may enter an arrangement for the payment of the deferred premiums over a longer period of time.

In the event an insured event occurs during the deferral period giving rise to the liability of the insurer to pay a claim, the order has stipulated the insurer shall honor the claim and only deduct the outstanding premiums and any deductible from the money paid under the claim.

The government has facilitated similar measures to help Bahamians who have been adversely impacted by the COVID-19 pandemic and the resulting closure of the economy, including mortgage and loan payment deferrals and utility bill payment deferrals.

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source https://thenassauguardian.com/2020/04/22/details-of-deferred-insurance-premiums-revealed/