Question: I went to insure my car the other day and read the policy. It covers everyone other than the owner. The agent confirmed that. She also said that even a comprehensive policy like mine would not protect me if I was injured in an accident. I would get no assistance from the insurer because I was not covered in the policy. I was shocked by the information because of the large premium I paid. It is dishonest and unfair for consumers to pay so much premium and not benefit if they are hurt or disabled while driving. Is there any way in which policy owners can protect themselves?

- J.C., Santa Cruz PO, St Elizabeth.

Answer: There are many ways that insurance consumers - like other buyers - can protect themselves. One method is to seek information. This involves reading sales brochures and contracts and asking questions. Another approach is to check more than one source. Question what 'experts' like insurance agents, consultants, doctors and lawyers tell you if what you learn does not make sense.

These comments are offered primarily to other readers. You already know this.

The agent who handled your question needs additional training. His or her knowledge about 'comprehensive motor policies' is very limited. He does not know that your policy can be extended (to use the language of industry insiders) to include the risks of injury or disablement for an amount as low as $500 plus GCT.

It is even more surprising that the so-called agent - who should have a licence from The Financial Services Commission, the industry regulator - appears to be ignorant of the fact that insurers sell personal accident insurance to protect persons and organisations that buy motor insurance.

Motor-insurance demand and supply is driven by regulation.

Third-Party Risks act

The law, The Motor Vehicles (Third-Party Risks) Act, sets out what motor-insurance policies should cover. The statute says insurance must protect the owner/driver of motor vehicles against any "liability incurred in respect of (i) the death of, or bodily injury to, any person; and (ii) any damage to property, caused by, or arising out of the use of the motor vehicle on the road".

The law does not provide any protection to the owner/driver of a vehicle who is injured or disabled in a collision where he or she was at fault. It is intended primarily to protect other road users - pedestrians and passengers - not the at-fault drivers.

Drivers who are injured when they are not to blame have the right to seek compensation from the insurance of the at-fault owner/driver. If the at-fault owner/driver does not have insurance, redress can be obtained through the courts.

Car owners like you can protect themselves by buying personal accident (PA) insurance. It is as an add-on to motor policies. The trigger for claims is injury or death caused by an accident.

Three kinds of benefits are normally available. One is the payment of an amount for permanent total disablement. In another case, a fixed amount is paid to the relatives of the driver in the event of death as the result of an accident.

The third kind of benefit is the payment of another amount for medical expenses. No health examinations are required for this type of coverage. The minimum age for this coverage is 18 years and the maximum age is 70.

The extra cost for PA insurance varies from company to company. Table 1 summarises premiums that I sourced from one insurer.

May I suggest that you speak with your insurance agent once and share this information with him or her.

I hope that it goes some way in showing how the risks associated with driving on our dangerous roads can be lessened and help in the training of your insurance agent.

Cedric E. Stephens provides independent information and free advice about the management of risks and insurance. Email: aegis@cwjamaica.com.