BARBADIANS WILL SOON be paying more for motor insurance.
This is due to the effects of Government’s latest tax increases and not amendments to the Road Traffic Act, says president of the General Insurance Association of Barbados (GIAB), Michael Holder.
He made the disclosure while responding to questions from the DAILY NATION yesterday on whether the amendments, which were debated in the House of Assembly on Tuesday, would impact insurance costs. He confirmed that motor insurance costs would soon rise, but for a different reason.
“Ultimately, and very soon, there should be increases in the motor insurance premiums, but it would not be as a result of any impending changes to the [Road Traffic Act]. It would be purely because of increasing claims costs,” the president said.
“What will impact the premiums are the spiralling costs for claims . . . . Let’s take, for instance, car parts, where the cost would have increased because of the increase [in] the [National Social Responsibility Levy],” he continued, adding companies also had to pay the two per cent foreign exchange commission. (AD)
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