The importance of Insurance

12.NOV.10

EDITOR: As a result of the global financial crisis which has inevitably affected insurance companies in St. Vincent and the Grenadines, the general mistrust of insurance companies felt by the public has been underscored and has resulted in more persons refusing or failing to insure or to those who have insured cancelling policies.{{more}}

Nevertheless, the sudden appearance and devastating effects of Hurricane Tomas have demonstrated how more than ever before the importance of every individual to protect his investment by obtaining the relevant insurance coverage.

Travelling across the country on Monday, November 1st, I was saddened by the vast and varied damage sustained as a result of the passage of Hurricane Tomas. The damage suffered by each individual represents income lost or potential income lost by the said individual.

Those individuals who had insurance coverage may now recoup their losses from their insured, while those who had no insurance coverage would have to depend on the availability of the scarce state funds. It is a time like this which highlights the importance of insurance coverage.

When you insure your property, the insurer promises to pay you a sum of money if something happens that causes you to suffer economic loss.

Insurance companies offer a range of products such as homeowner insurance, farm insurance, public liability insurance, loss of income insurance, motor vehicle insurance, etc,…that will protect the insured from a potential loss of income.

I am always saddened to hear persons say: “I don’t need to insure my property because God will.” Such persons will be advised to adequately insure their properties against loss or damage as this is one way of demonstrating their gratitude to God by whose blessing they have been enabled to acquire such possessions.

In most cases, our home represents the single most important investment in our lives. It is, therefore, our responsibility to insure that home at its true value. Please avoid underinsuring your home.

A.Noumba