General Accident Insurance Company Barbados makes insurance easy with straightforward policy selection and customization. They offer dedicated customer support and claims assistance, ensuring a smooth process. Also, they provide ongoing policy management and updates to keep your coverage current.

For more insurance information, browse our blog.

Suggested reading: Motor Vehicle Registration in Barbados: A Complete Guide

10 Safety Tips When Driving with Baby/Toddlers/Kids

June marks the start of the hurricane season in the Caribbean. As such, we all must take the necessary steps to be safe during this period. Disaster preparedness is essential as it helps you to minimize the impact that a hurricane has on your family and livelihood.

When you are planning for a hurricane always consider the following: risk assessment, emergency kit, evacuation plan, communication plan, home preparation, insurance review, and post-hurricane evacuation plan.

There is nothing like getting your first vehicle. The feeling of independence and convenience can be enticing, but this also comes with responsibility. There are necessary steps that you must take before you can own a vehicle; one of these includes completing your motor vehicle registration. Motor vehicle registration can be defined as legal documentation that signifies that the vehicle belongs to you. The motor vehicle registration highlights that the owner driver has the official right to travel on the Barbados roadways.

How to check your vehicle registration status?

Two of the ways in which you can check your motor vehicle status is accessing the revenue authority’s website and inserting your license plate and vehicle registration number. 

Steps to register your vehicle

• Go on the online application form on the Barbados Revenue Authority web page.
• It will be divided into two sections. Read the instructions carefully and follow the instructions to complete the form.
• If you are unable to complete the form all at once, you may save the information and return at a later time.
• Important documents for registration
• Certificate of Weight Unladen of a Vehicle (Weight Certificate)
• Single Administrative Document (Customs Document)
• Letter of Sale addressed to the Chief Licensing Officer, Barbados Licensing Authority
• Insurance Certificate or cover Note with at least 7 days validity stating type of registration
• Valid Photo Identification
• Financial Institution Letter (if applicable)
• Road Worthy Certificate (if applicable)
• Special Licence (dependent on weight of vehicle) (if applicable)
• Before you submit the application, ensure that all your necessary documents are provided.
• Once you have provided all the documentation, submit the application.
• Check your notification from emails and SMS messages to stay up to date on the progress of your application.

What is the Electronic Vehicle Registration (EVR) programme?

• The EVR programme is a government-controlled system that monitors the registration and insurance compliance of vehicles on Barbados’ roads.

• The radio frequency identification tag (RFID tag), is an electromagnetic sticker is placed on your windshield and indicates that the vehicle is registered legally with the Barbados Licensing Authority, and that your insurance is current.

• Motorists do not have to pay to get the EVR process done.

• Your personal information including your name, address, vehicle registration, chassis and engine numbers, and insurance status is readable via the RFID tag only by EVR cameras. It validates that your vehicle is registered and insured.
• The RFID tag can last up to ten (10) years.

The RFID tag is transferable to the new owner and your information will be erased from the tag if you choose to purchase a new vehicle.

Three EVR Centres that you can visit are:

1. National Cultural Foundation car park, West Terrace, St. James
2. Garfield Sobers Sports Complex, Wildey, St. Michael (Gymnasium car park)
3. Oistins car park, behind Granny’s Restaurant, Oistins, Christ Church

What are the documents need submit to complete the EVR process?

Private vehicle owners must submit a printed copy of these documents to the EVR Centre:

• Proof of insurance
• Proof of address (utility bill, bank, or credit union statement)
• Your identification (ID) card, valid driver’s licence, or a valid form of picture ID.

You may use a representative if you do not have proof of address. However, the representative must be able to indicate via letter that you live with them at the same residence. He or she should provide valid ID and provide a valid form of identification. Your representative will be held penalized if they provide false information.

You must submit a printed copy of these documents if the vehicles are company owned:

• List of vehicles owned by the company & their registration numbers

• Proof of insurance (certificate or cover note)

• Company documents issued by Corporate Affairs and Intellectual Property Office (CAIPO)

Your representative must bring their ID, a copy of yours, and the other documentation requested. He or she should confirm your identity on your behalf and will be held liable if it is false.

All vehicles will eventually be required to be registered with the EVR system.  Hence, individuals who want vehicles tagged may visit an EVR Centre of their choice to complete the EVR process.

Cost for Registration

First-time registrations for private vehicles cost four hundred dollars ($400.00).  

Commercial vehicles will incur a fee of one thousand dollars ($1000.00).  The renewal of commercial vehicles will also incur an annual fee. 

All vehicles must be registered with the Barbados Licensing Authority (BLA) to legally drive on the road.  

For more information on understanding your motor vehicle, browse our blog.

Suggested reading: Motorist’s Guide To “Road Tax” In Barbados

Common Car Insurance Myths Debunked

Insurance serves as a vital safety net, offering reassurance in the face of accidents, thefts, and unforeseen challenges. While traditional auto insurance is widely understood, the realm of insurance coverage extends far beyond vehicular protection. From travel and property to financial safeguards, the landscape of insurance options is expansive and diverse.

In this blog post, we will explore the concept of bond insurance, shedding light on its benefits and why it’s a valuable investment for bond issuers.

What is bond insurance?

The evaluation of a debt instrument considers the financial strength of the entity issuing it. If an issuer is perceived as risky, their credit rating decreases, leading investors to expect higher returns from investing in their debt securities. Consequently, such issuers face higher borrowing costs compared to more stable and less risky companies. To secure a more favorable rating and attract a larger pool of investors, companies often resort to credit enhancement measures.

Credit enhancement refers to actions taken by a borrower to bolster its creditworthiness in order to negotiate better terms for its debt. One such approach involves bond insurance, which typically results in the rating of the insured security being determined by the higher of either the insurer’s claims-paying rating or the rating the bond would receive without insurance, also referred to as the underlying rating.

Bond insurance, also known as financial guaranty insurance, is a type of insurance purchased by bond issuers to guarantee scheduled payments of interest and principal on bonds in the event of a payment default by the issuer.

Here’s how it typically works:

Issuer: The issuer of the bond purchases bond insurance from an insurance company.

Insurance Premium: The issuer pays a premium to the insurance company for this coverage. This premium is typically a percentage of the bond’s face value.

Coverage: Once insured, if the issuer defaults on the bond payments, the insurer steps in to make those payments to bondholders.

Bond insurance can enhance the credit rating of a bond, making it more attractive to investors. This is because the insurance provides an additional layer of security, reducing the risk associated with investing in the bond. As a result, insured bonds often receive higher credit ratings than uninsured bonds issued by the same entity.

Type of Bond Insurance

General Accident Barbados offers three types of bond insurance to customers; Tender/Bid Bond, Performance Bond and Mobilization Bond.

Tender/Bid Bond

A bid bond guarantees compensation to the bond owner if the bidder fails to begin a project. Bid bonds are often used for construction jobs or other projects with similar bid-based selection processes. This ensures that the contractor has the experience and means to deal with the contract if awarded to him. This bond is a guarantee by the Surety/Insurer to cover the cost to the Principal in the event the contractor is unable to take up the award and the contract needs to be re-tendered.

Performance Bond

This is a financial guarantee to one party in a contract against the failure of the other party to meet its obligations. It is also referred to as a contract bond. It’s an undertaking/guarantee by the Surety/Insurer to pay compensation to the Principal if the person guaranteed by the bond, in other words the contractor, fails to fulfil his obligation under the terms of the contract to complete the performance of the contracted works and in the manner  prescribed.

Mobilization Bond

This bond is required by the project owner to ensure that the funds which have been advanced to the contractor will be properly utilized for the project work only. This guarantee covers the un-recovered amount of the bond by the project owner which has not been adjusted by the contractor or the bond value whichever is lower. Mobilization Advance Bonds are usually issued from the commencement of the project and not on the running projects. An undertaking/guarantee by the Surety/Insurer to pay compensation to the Principal where the contractor has been advanced funds by the Principal to commence the work. Where an advance payment is made, the Principal needs to be sure that this will be expended on the contract.

Why should you get bond insurance?

Risk Mitigation: Bond insurance protects against the risk of default by the issuer. This can be particularly attractive for investors concerned about the creditworthiness of the bond issuer.

Enhanced Credit Rating: Insured bonds typically receive higher credit ratings than uninsured bonds issued by the same entity. This higher rating can make the bonds more attractive to investors and potentially lower borrowing costs for the issuer.

Stable Income: Bondholders rely on the regular interest payments from their investments. Bond insurance ensures that these payments are made even if the issuer defaults, providing a more stable income stream for investors.

Diversification: Including insured bonds in an investment portfolio can add diversification by reducing exposure to credit risk. This diversification can enhance the overall risk-adjusted returns of the portfolio.

Peace of Mind: Bond insurance provides peace of mind to investors, knowing that their investment is protected against default risk. This can be particularly important for conservative investors or those with a lower risk tolerance.

Access to Higher Yielding Bonds: Some investors may be willing to invest in bonds with higher yields but are deterred by the perceived risk of default. Bond insurance can make these higher-yielding bonds more palatable by providing a safety net against default.

Who is bond insurance for?

Bond insurance is for various parties involved in the bond market, including:

Bond Issuers

Companies, governments, municipalities, or other entities that issue bonds can use bond insurance to enhance the creditworthiness of their bonds. By purchasing bond insurance, issuers can potentially obtain higher credit ratings for their bonds, leading to lower borrowing costs.

Investors

Bond insurance is also for investors who seek to mitigate the risk of default on their bond investments. Insured bonds provide investors with assurance that they will receive scheduled interest and principal payments even if the issuer defaults. This can be particularly attractive to risk-averse investors seeking stable income streams.

Financial Institutions

Financial institutions such as banks and investment firms may use bond insurance to manage their risk exposure. Insuring their bond holdings can help these institutions maintain a more stable and diversified investment portfolio.

Regulators

Regulatory bodies may also have an interest in bond insurance as a means to ensure stability and confidence in the financial markets. Bond insurance can contribute to the overall risk management framework within the financial system.

Rating Agencies

Rating agencies assess the creditworthiness of bonds and other debt instruments. Bond insurance can influence the credit ratings assigned to bonds, which in turn affects investors’ perceptions of risk and potential returns.

In summary, bond insurance is a valuable tool for both investors and issuers to manage credit risk and enhance the attractiveness of bond investments. It not only ensures legal compliance but also provides an added layer of financial protection, offering peace of mind to customers and confidence in the financial system.

With your bond insurance coverage GenAc guarantees scheduled payments of interest and principal on a bond or other security in the event of a payment default by the issuer of the bond or security.

Suggested reading: Understanding Engineering Insurance: A Guide to Safeguarding Your Investments

As residents of Barbados know all too well, hurricane season brings the potential for powerful storms that can wreak havoc on homes and communities. With the unpredictability of tropical weather patterns, being prepared is essential to safeguarding your home and ensuring the safety of your family. In this blog post, we’ll discuss ten hurricane season preparedness tips to help you protect your home and minimize damage during inclement weather.

1. Create a Hurricane Preparedness Plan

Develop a comprehensive plan that outlines steps to take before, during, and after a hurricane. Identify evacuation routes, emergency shelters, and establish communication channels with family members. Having a clear plan in place will help you stay organized and act swiftly when a storm approaches.

2. Secure Outdoor Items

Remove or secure outdoor furniture, decorations and other loose items that could become projectiles in high winds. Store these items in a secure location or anchor them down to prevent them from causing damage to your home or neighboring properties.

3. Trim Trees and Shrubs

Trim back overhanging branches and remove dead or weak trees and shrubs around your property. Strong winds can easily topple trees, causing significant damage to homes and power lines. Keeping trees well-maintained reduces the risk of them falling during a storm.

4. Reinforce Doors and Windows

Strengthen your home’s defense against high winds by installing storm shutters or boarding up windows with plywood. Ensure that exterior doors are equipped with secure locks and consider reinforcing them with additional bolts or braces for added protection.

5. Check Roof and Gutters

Inspect your roof for loose or damaged covering, as well as signs of leaks or weak spots. Repair any issues promptly to prevent water intrusion during heavy rainfall. Clean gutters and downspouts to ensure proper drainage and prevent water from pooling around your home’s foundation.

6. Backup Power Source

Invest in a generator or alternative power source to keep essential appliances and electronics running in the event of a power outage. Make sure to have an adequate supply of fuel on hand and test your generator regularly to ensure it’s in good working condition.

7. Stock Up on Supplies

Assemble a hurricane survival kit that includes non-perishable food, water, medications, flashlights, batteries and other essential supplies. Stock up on enough provisions to sustain your family for at least several days in case of prolonged power outages or restricted access to stores.

8. Secure Important Documents

Safeguard important documents such as insurance policies, identification papers, and medical records in waterproof containers or digitally scan and store them in a secure cloud-based storage system. Having access to these documents is crucial for filing insurance claims and obtaining assistance after a storm.

9. Stay Informed

Stay informed about weather updates and advisories from reliable sources such as the Barbados Meteorological Services and Department of Emergency Management (DEM). Follow their recommendations and be prepared to take action based on changing conditions.

10. Review Insurance Coverage

Review your home insurance policy to ensure that you have adequate coverage for potential hurricane-related damages. Understand your policy limits, deductibles and exclusions, and consider purchasing additional coverage, if necessary, to protect your home and belongings.

By taking proactive measures and following these hurricane preparedness tips, you can better protect your home and family during the challenging months of hurricane season in Barbados. Remember, preparedness is key to minimizing the impact of severe weather events and ensuring the safety and well-being of everyone in your household. Stay safe, stay informed and be ready to take action when needed.

What to do after a hurricane?

After a hurricane has passed, it’s important to proceed with caution and take necessary steps to ensure your safety and well-being. Here’s a comprehensive guide on what to do after a hurricane:

1. Listen to Local Authorities: Stay tuned to updates from local authorities and emergency management agencies for information on road conditions, evacuation orders and safety advisories.

2. Assess Damage: Survey your property for any damage caused by the hurricane. Exercise caution when inspecting your home and be aware of potential hazards such as downed power lines, gas leaks and structural damage.

3. Check for Safety Hazards: Ensure that your home is safe to enter before returning. Look for signs of structural damage, including cracks in walls, ceilings or foundation. If you smell gas or suspect a leak, evacuate immediately and contact the appropriate authorities.

4. Document Damage: Take photographs or videos of any damage to your property and belongings. This will be valuable when filing insurance claims and seeking assistance from relief agencies.

5. Secure Property: Take immediate steps to secure your property and prevent further damage. Cover broken windows and doors with tarps or plywood, and tarp damaged roofs to prevent water intrusion.

6. Contact Insurance Company: Notify your insurance company as soon as possible to report any damage to your home or vehicles. Provide them with a detailed inventory of damaged items and documentation to support your claim.

7. Dispose of Debris: Clear debris from your property, including fallen trees and branches. Be cautious when handling debris and wear appropriate protective gear to avoid injury.

8. Restore Utilities: Contact utility companies to report outages or damage to utility lines. Do not attempt to restore power or utilities yourself, as this should be done by trained professionals.

9. Monitor Health Risks: Be mindful of potential health risks in the aftermath of a hurricane, including contaminated water, mold growth and insect infestations. Take precautions to protect yourself and your family from these hazards.

10. Seek Assistance if Needed: If you require assistance with cleanup, repairs, or temporary housing, reach out to local relief agencies, government agencies, or community organizations for support. Don’t hesitate to ask for help if you need it.

11. Stay Informed: Continue to monitor updates from local authorities and news sources for information on recovery efforts, assistance programs and safety advisories. Stay informed and be prepared to adapt to changing conditions as recovery efforts progress.

12. Take Care of Yourself and Others: Remember to take care of yourself and prioritize your well-being during the recovery process. Stay hydrated, get plenty of rest and seek support from friends, family, or mental health professionals if needed.

By following these steps and taking proactive measures, you can navigate the aftermath of a hurricane safely and effectively. Remember that recovery takes time, so be patient and stay resilient as you work towards rebuilding and restoring your community.

For more information on hurricane preparedness tips, browse our blog.