Frequently Asked Questions

• 50% deposit, balance due in 30 days
• Premium Financing through JN Finance or any of our other approved financiers
• Pay your premiums online using our Easy Payment options through JNLive, Scotia Online or NCB ELink.

The main factors for escalating premiums are:

• Poor claims experience from the local pool of business. All premiums collected are pooled together to pay for claims. If there is a significant increase in the number and costs of claims within the annual contract, the entire pool will be adjusted the following year.
• Poor claims internationally. Local companies all buy additional coverage from International reinsurers. The premiums collected locally cannot cover catastrophes such as hurricanes, storms and other large mass damage. If the International reinsurers have had an active year because of typhoons or storm damage internationally or in more recent times, the losses caused by the bombing of the World Trade Center, they will charge us more for the cover we buy and demand a rate increase.
• For the Property Market, it is the reinsurer who often determines what rates are charged locally. The Caribbean is an hurricane prone region and even if one does not hit Jamaica, the US and the other Caribbean Countries are hit almost every year. Reinsurers have threatened to withdraw from the region, which would make insurance unavailable and unattainable for most people. This would seriously threaten the economic and social stability of the country. Government funds and international aid would not be enough for us to rebuild as we did after Gilbert.

• The nature of the claim may not be clear cut
• Cooperation of other parties may not be conducive to speedy processing/liability may be in dispute
• Documentation may be inadequate/outstanding

• In the case of property insurance you should insure for the replacement cost of the property.
• In the case of comprehensive motor insurance you should insure for the market value of the vehicle.

• Owner
• Authorized Agent

• Financial compensation
• Peace of mind
• Security
• Quick recovery from a loss

The following classes of insurance may be arranged:

• Homeowners Insurance
• Commercial property
• Building under construction
• Cars
• Computer
• Money
• Goods in Transit
• Liability
• Bonds
• Consequential Loss
• Fidelity
• Personal Accident
• Marine Insurance

A pool of funds to pay for losses covered by your policy. Your policy runs for one year from the date of purchase

We offer premium financing through JN Finance Ltd and other approved premium financiers. The terms on offer from JN Finance Ltd are as follows:

• Deposit 25% (plus first month’s installment)
• Balance spread over 3 to 9 months (balance can be paid at any JN branch, JN Finance or NEM)
• Low interest rate

NOTE: No financing on Third Party policies

• 50% deposit, balance due in 30 days
• Premium Financing through JN Finance or any of our other approved financiers
• Pay your premiums online using our Easy Payment options through JNLive, Scotia Online or NCB ELink.

The main factor for escalating premiums is the overall poor claims experience of the motor pool. All premiums collected are pooled together to pay for claims. If there is a significant increase in the number and costs of claims within the annual contract, the entire pool will be adjusted the following year. However, your no-claim bonus serves to provide a savings for those who have not depleted the pool.

5% or higher subject to other policy conditions

The higher excess is charged in cases where the risk of an accident occurring is higher than normal, subject to the type of vehicle and age and experience of the insured and/or driver.

• To reduce the cost of insurance
• To eliminate small claims
• To protect your asset by ensuring that you exercise due caution while driving, as the insured will be expected to bear some costs.

Otherwise called a deductible, is the first portion of a claim for damage to your vehicle. You are responsible for paying this amount regardless of who is at fault. Your insurance will pay for the remainder of the claim. The excess is usually 5% of the Sum Insured:

Motorcar insured for 1,000,000
Accident amounting to 200,000
Excess is 5% of SI or 50,000
You absorb 50,000
We pay 150,000

• The rates and terms imposed by reinsurance companies
• The claims experience in Jamaica, the Caribbean & internationally
• The location in which the property is located
• Whether or not the area is subject to social unrest, flood prone or other adverse exposures
• The type of construction. eg. Roof and walls
• The client's previous claims experience
• Occupation of the building

Home Owner’s Policies

Other excesses are applicable, please  request details

For example:
House insured for $6,000,000
Loss by Hurricane amounting to $400,000
You absorb $120,000
Excess is 2% of S.I. or $120,000
NEM pays $280,000

Insurance is normally sold to the owner or authorized agent of an item.

There are several benefits to you which include:

• Protection against claims arising from Legal Liabilities (Employers, Public and Personal)
• It is a requirement for Mortgages and Liens
• A means of Financial Compensation
• Transfer of risk which results in better security, peace of mind and quick recovery from a loss

Our recommendation is to insure your property for its full replacement cost. When you do not do this and insure for less than the replacement value, we consider that you have “self insured” the difference. If there is a claim, we share the cost of the claim with you in the same proportion that you have self-insured. That is, if you have insured for 50% of the value, then you have self-insured the other 50%. When you have a claim you are responsible for absorbing 50% of the claim and we pay the other 50%, less the policy excess.

WE DO NOT RECOMMEND THAT YOU SELF INSURE, as the application of the average clause can be detrimental to your financial ability to recover after a loss. Please note this is a standard policy condition affecting all property policies in Jamaica and most of the Caribbean.

OR (is this explanation any simpler to you?)

A proportionate sharing of the cost of your claim when you insure for less than the replacement cost of the item.

You can insure any item you may consider of value for example:

• House
• Contents
• Building under construction
• Computer

The care, skill and control that you exercise over your vehicle will impact significantly on your accident record. You have far more control in determining your outcome. Property owners do not provide the same level of control over Acts of God, and acts of criminals. The No Claim Bonus is therefore offered to encourage careful and defensive driving and to help to reduce the high frequency of claims.

• Replacement Value of the Property
  • Valuation Report – recommended choice
  • Checking with realtors for current replacement values – contact the Master Builders’ Association for current rates per square foot then calculate based on sq. ft rate x size of building – as a guide only
• The Exact Address, including lot or street number, and directions for rural areas. Materials from which the building is constructed. e.g. reinforced concrete walls and shingle roof
• Permission in the form of a Power of Attorney or Agent Authorisation if you are not the Owner of the Property
• Claims History