Cabinet has approved insurance placement for the Airports Authority of Jamaica (AAJ) for the period May 1, 2012, to April 30, 2015, through Marathon Insurance Brokers Limited.
“The AAJ’s insurance had to be extended in March for a period of one month to allow for the Financial Services Commission (FSC) to investigate if there was preferential treatment in the quotation rates by the insurance company to two of the brokers,” Minister of Information, Senator the Hon. Sandrea Falconer explained, as she made the announcement at the weekly Jamaica House press briefing, held on May 9, at the Office of the Prime Minister.
She said in awarding the contract, the Infrastructure sub-Committee of Cabinet had noted that it was important for the insurance to be placed, because of the upcoming hurricane season, and other implications for the AAJ.
“The committee included a provision for the early termination of the contract if the FSC’s ruling was unfavourable, and in keeping with the endorsement of the National Contracts Commission, the contract and premium for the first year were approved,” Senator Falconer said. The arrangement includes United States designated policies for $1.2 million and Jamaican designated policies in the sum of $5.8 million.
Meanwhile, Cabinet also approved a three-year contract for the provision of services under the Government Employee Administrative Services Only Health Scheme, and related insurance policies from May 1, 2012 to April 30, 2015. The scheme is a contributory self insurance group health programme, which provides benefits to over 74,000 government employees and their eligible dependents. The cost for the first year will be $4.150 billion.
The contract includes coverage for health benefits and personal accident insurance. Sagicor will provide coverage for the health benefits at a cost of $4.109 billion; and overseas medical emergency insurance at a cost of $32.9 million. Meanwhile, Guardian Life will provide personal accident insurance coverage at a cost of $8.67 million.
By Alphea Saunders, JIS Reporter