Government Renews Policies for Disasters

The Government has renewed Jamaica’s policies with the Caribbean Catastrophe Risk Insurance Facility Segregated Portfolio Company (CCRIF SC) in the sum of US$6.1 million for 2017/18.

According to the Administration’s 2017/18 Fiscal Policy Paper (FPP) Interim Report, the renewals, inclusive of discount, cover eventualities resulting from tropical cyclones, earthquakes and excess rainfall.

The FPP, which was tabled in the House of Representatives recently by Finance and the Public Service Minister, Hon. Audley Shaw, indicates that the renewals were necessary, particularly in light of heightened activities associated with the 2017 hurricane season, which runs from June to November, and has been described as the most disruptive since 2005, as well as Jamaica’s exposure to natural disasters consequent on climate change.

Meanwhile, Jamaica is expected to benefit from two special features that the CCRIF has developed in relation to the policies for tropical cyclones and earthquakes. These are the reinstatement of sum insured cover, and the aggregate deductible cover.

According to the FPP, these features will allow CCRIF member countries to access coverage beyond the limits of their policies, and are designed to supplement the existing tropical cyclone and earthquake policy structures.

Under the specific scenarios, these features will provide payouts where the main policy would not provide coverage.

These provisions are being made available at no additional cost to member countries, in commemoration of the CCRIF’s 10th anniversary.

The FPP also indicates that the Government continues to set aside a contingency reserve equivalent to one per cent of the gross domestic product to assist in dealing with unforeseen circumstances, inclusive of natural disasters and other expenses or revenue shocks.