Consumers' Guarantee Insurance by debmalya.datta


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									                    -White Paper –

            Consumers’ Guarantee Insurance

“Embracing the future with INNOVATION and GROWTH.”
                                        - ABSTRACT -

The serene island of Barbados, inhabited by an approximate 284,000 people is the
most developed country in the Eastern Caribbean.

Varieties of motor vehicles, especially high end ones, dot the streets of Barbados. While
the people enjoy a moderately high standard of living in a well-developed mixed
economy and have foreign direct investments flowing in, they are prone to great
unforeseen and uncertain risks which can cost them heavy damages if preventive
measures are not taken. The island is known to be among countries with the "densest"
and "most crowded road networks," with 62.6 vehicles per kilometre of roads, states the
Economist Intelligence Unit, which compiles and publishes data on a range of economic
and social issues every year. With increasing number of vehicles and laws that permit
drinking while driving, motor accidents are steeply on the rise.

Motor vehicles are more prone to accidents. Apart from the commonly known road
accidents, vehicles can also suffer damages due to to natural calamities like fire,
storms, flood, lightning, earthquake to name a few. In addition to it, there are other
forms of threat like burglary, malicious damage, collision or impact damage and the list
goes on.
In recent times statistics have revealed an alarming increase in the rate of motor and
road accidents,. The lives of people in the vehicles and those on the road along with the
safety of the car are threatened. To counter this threat , protection is offered by a „coat
of arms‟ of motor insurance. This ‘Coat of Arms’ is the very Barbadian National
The purpose of this whitepaper is to study the nature of motor insurance that is
available in Barbados today with special reference to the policies offered by Consumer‟s
Guarantee Insurance (CGI).
  1. Introduction

  2. The Big Picture -Scenario of Motor Insurance in Barbados

  3. The Need for Motor Insurance

  4. What is Motor Insurance?

  5. Major Player in Motor Insurance Market : Consumers’ Guarantee Insurance (CGI)

  6. How does CGI Motor Insurance provide protection?

  7. Features of CGI Motor Insurance

  8. Conclusion
1. Introduction

What do you do when faced with a financial emergency arising out of your car accident?
 Your car has been reduced to heap of metal. The third party is clamoring for
compensation. The medical bills of the driver have skyrocketed; and they stare at you
looming in the face. No sooner do you start calculating the restoration expenses of your
car than you realize that you have run out of funds! Do you fret? Or was your car
insured? Not just insured, was it adequately insured so that it can now take care of all
these expenses?

Well, almost all accident victims and owners of motor cars go through this rough
struggle. By becoming aware of motor insurance and knowing which one suits your
need and pocket, you are better prepared and secured when you hit the roads.
The importance of Motor Insurance cannot be undermined. Often people do not
understand the gravity of it‟s importance correctly. Often they do not know which
policies will meet their needs. They are either unaware or confused. Hence they turn a
blind eye. As such when they meet with an accident, they pay a heavy price.

To avoid the above, there are innovative solutions from renowned insurance companies
like Consumers‟ Guarantee Insurance (CGI) which has revolutionized Motor Insurance
This white paper is a simple treatise helping you to explore for yourself the very
essence of Motor Insurance- how to use it to your advantage. After all, being
forewarned is forearmed!
 2. The Big Picture – Motor Insurance Scenario of Barbados

Though Barbados has been lucky in dodging the devastating storms that have ripped
people and places apart, it is still prone to infrequent hurricanes, periodic landslides and
other natural calamities.

In recent times, Barbados has ranked
among the top 10 nations in the world with
high road accident victims according to the
size of their population as determined by
the Economist Intelligence Unit.
Reportedly, Barbadians are getting injured
in road accidents at an annual rate of 763
victims for every 100, 000 people on the
island, putting Barbados in the eighth spot globally. (Source: Barbados Road Safety
Association & website).

As on 22nd June 2013 14:30 hrs, the number of road traffic accident fatalities worldwide
since 1st Jan 2013 alone is 638,278 (Source:

Accidents are more rampant in places that are densely populated, where the probability
increases drastically. For instance, the island of Barbados was ranked sixth in the world
in terms of having the most densely networked roadways with 62.6 vehicles per
kilometre of roads, according to the Economist Intelligence Unit.

According to Barbados Roads Motor Vehicle Accident Statistics the total number of
motor related accidents has increased from 6400 in 1998 to 8750 in 2008.
(Source: )

The graph shows
the trend of
average auto
expenditure over
the past few
3. The Need for Motor Insurance

                                                                     Accidents happen.
                                                                     No matter how good
                                                                     a driver you are, even
                                                                     if it may not be your
                                                                     fault, you can never
                                                                     be certain that your
                                                                     car won‟t meet with
                                                                     an accident. In the
                                                                     event of an accident,
                                                                     what safeguards you
                                                                     and your car
                                                                     financially is the
                                                                     refuge of insurance.
Although many feel that paying money over regular intervals to insurance companies
which offer these policies is useless. However, it‟s otherwise. Even the law states that it
is mandatory. Should you get involved in an accident and fail to produce the relevant
papers, you stand to have your license seized as you are on the wrong side of the law.
Inspire of knowing this, there are people who eschew the procedure. Understanding the
importance of getting your vehicle insured in depth will create more awareness. It‟ will
reveal to you that getting your vehicle insured is actually an investment!

4. What is Motor Insurance? (The Basic Concept of Motor Insurance)

When a car gets involved in an accident, instead of the owner paying out of his pocket
for the damages, the responsibility is shouldered by motor insurance companies which
pay for all or most of the expenses or the other vehicle expenses as well.This is
achieved when the owner pays annual „premiums‟ to the company.

Simply put, Motor Insurance is basically the cost necessary to reinstate a person‟s
vehicle in the event of a mishap. It is basically a contract in which the ownerr pays an
amount (called premium) to an insurance company for a fixed period of time. This
payment is distributed over term- intervals. In return, the company takes on the onus of
financial assistance to the vehicle owner in the event of mishap or upon the expiration of
the contract. The vehicle owner who pays the premium amount to the company is then
said to be „insured‟.

In the event of a calamity, the extent to which the vehicle owner is repaid will depend on
the policy detailing as agreed upon at the time of commencement of the contract.
Besides, the clauses governing the repayment amount also include the inflation
 consideration. The amount repaid to the owner is based on the extent to which one
                             has insured oneself. Such companies lay down various
                                  schemes and one is protected only in the ambit of all
                                    that the Policy covers.
                                       In recent times, many policies have flooded the
                                         market which cater to the various needs of
                                          consumers. While these various companies
                                           present their offers in impressive displays, the
                                            basic concept of financially protecting one‟s
                                            vehicle remains unchanged.
                                             A smart owner needs to evaluate judiciously
                                             the amount of financial protection one would
                                           be needing and subsequently avail a policy that
                                                    covers his vehicle completely.
5. Major Player in Motor Insurance Market:Consumer’s Guarantee Insurance (CGI)

Among the major players in the market, Consumers‟ Guarantee Insurance (CGI)
emerges as one of the most prominent names.

Since it‟s foundation on November 1, 1993, the company has built it‟s reputation
through innovation and value addition to the insurance industry. It‟s deep understanding
of consumer‟s needs and concern for the greater good have led it to come up with novel
solutions that have revolutionized the domestic insurance market.

The company has introduced many new innovations to the local insurance industry.
Products like “Homemate” which have catapulted CGI to the forefront of the industry
over the last two decades. The company offers competitive pricing with a customer
oriented focus in delivering products and services.
CGI insures over $4 Billion in property assets. It is the second largest auto insurer with
premium income of over $55 million annually. Approximately $25 million worth of claim
payments are made annually.

Today in response to the increased risks that endanger people, and
their vehicles on roads, CGI counteracts it by bridging the gap
between a challenging economic climate and the needy consumers‟
pockets. State of the art online services and the introduction of
Monthly Insurance Plans enable customers to pay their instalments in
a way that is most convenient to them.

What makes CGI different and a cut above the rest?

A smart vehicle owner needs to evaluate judiciously the amount of
financial protection one would need and subsequently avail a policy
that covers vehicle completely. This where a company like
Consumer‟s Guarantee Insurance (CGI) steps in and helps vehicle
owner s to assess accurately how much to spend without
unnecessary expenditures. It is this approach, a customer oriented
point of view that sets CGI apart from other insurance companies and
makes it stand out.
6. How does CGI Motor Insurance provide protection?

   CGI provides “affordable motor insurance” designed to suit every pocket.
   ‘Free valuation service’ is provided to all customers so that they only purchase
     the coverage they actually need. This results in savings through lower cost
   In order to cater to the different situations and various needs of customers, CGI
     has come up with novel solutions. Products like “Agreed Value” motor insurance,
     “Automate” roadside assistance and free car valuations have revolutionized the
     domestic insurance market.
   Unmatched level of service is offered to customers.
   CGI has introduced a range of online services that replace tedious paperwork
     and make the whole process quicker, easier to understand and available to the
     customers anytime at their convenience.
   Free motor insurance quotes and instalment calculators enable customers to
     compute premiums that suit their budget perfectly.

                                             7. Incredible Features of CGI Motor

                                             CGI offers low cost Motor Insurances that
                                             are very easily affordable.

                                            ‘Free valuation service’ is provided to all
                                       customers so that they only purchase the
coverage they actually need.

Unparalleled level of service is provided to customers at any point of time.

CGI has introduced a range of online services that replace tedious paperwork and make
the whole process quicker, easier to understand and available to the customers anytime
at their convenience.

Free Motor Insurance quotes and instalment calculators that enable customers to
compute premiums that suit their budget perfectly.

A free service called Auto Mate is
available to the CGI private car
Policyholders Auto Mate is a 24-hour
emergency response team trained in
resolving automotive problems like
Accident Response
Key Retrieval
Emergency Fuel Delivery
Flat Tyre Assistance
Mechanical/Breakdown Assistance
Shuttle Service from Accident or

CGI provides unparalleled level of
service to customers at any point of time.
                                  - CONCLUSION -

Given the dramatic increase in risks concerning road accidents and unforeseen incidents that
affect motor vehicle owners in Barbados today, the need for insurance cannot be diluted. The
insurance industry is on the rise.CGI offers policies that conveniently meet the different
budgets of different pockets and provide maximum coverage.

The company has a sound track record of smooth operations concerning reimbursement and
claim recovery. Besides, it‟s prompt customer services facilitate instant resolution of queries
and offer of unconditional support. Features like live chat enable customers to directly
communicate in real time with the customer service representatives in total confidentiality.

At the core, it is the deep respect for every customer‟s need which drives CGI to provide for
the very best. It is with this motto of adding value to every customer‟s life that it relentlessly
innovates; and today it solely stands on this foundation with a reputation built over the past 20

Essentially, what CGI provides to every customer is an unfaltering protection or a „coat of
arms‟. CGI has been standing tall over two decades now and beams with PRIDE for the
customer satisfaction that it delivers Secondly to make the lives of others easy, CGI has
always constantly pushed it‟s limits through innovation and sheer hard work. In other words it
has paved it‟s way by being INDUSTRIOUS and living upto it‟s commitment..

Thus, in a nutshell, the very spirit of the Barbadian National Symbol lives through the actions
of Consumers‟ Guarantee Insurance (CGI).

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