Hurricane Melissa: Jamaican Insurers Pay Out $54.35 Billion for Over 8,000 Claims

Nearly a year after one of the most powerful storms in Jamaican history left a trail of death and destruction across several parishes, domestic insurance companies have settled 8,357 Hurricane Melissa-related claims and paid out $54.35 billion, based on the latest figures published by the Insurance Association of Jamaica (IAJ).

Property and Motor Vehicle Claim Payouts

Figures released by the Insurance Association of Jamaica reveal that $51.9 billion had been disbursed by the conclusion of last month to settle claims concerning residential and commercial properties. An additional $2.3 billion was disbursed for motor vehicle-related claims, according to the association’s records.

Commercial properties accounted for $41.6 billion, or 80 per cent of claims under the property category, while residential properties accounted for $10.3 billion. A total of 983 claims remain outstanding, with residential and commercial property claims making up 740 of those pending cases.

Parish Breakdown and Insurance Penetration

Data released by the Insurance Association of Jamaica shows that insurance companies paid over $40.1 billion to cover property-related claims across the five parishes hardest hit by the category five hurricane last October. St James contributed $30.5 billion to that sum, with Hanover following at $3.5 billion, Westmoreland at $2.94 billion, St Ann at $1.75 billion, and St Elizabeth at $1.43 billion.

It’s important to highlight that St Elizabeth, one of the parishes hardest hit by Hurricane Melissa, has a low level of insurance penetration. Consequently, despite the extensive damage sustained, the parish has recorded low insurance payouts.

Insurance Association of Jamaica

Public Concerns and Outstanding Engineering Claims

The disclosures arrive amid public concerns regarding several issues, including the time insurers are taking to resolve certain claims and questions surrounding settlement calculations, deductibles, property valuations, and the application of the average clause. The Insurance Association of Jamaica disclosed that 45 per cent of engineering claims remain outstanding, making it the most challenging category due to the complexity of assessments and settlement requirements.

To address ongoing delays, insurance companies have made interim payments on 205 outstanding property and engineering claims. The association stated that these disbursements reflect ongoing efforts to provide financial support to policyholders while final settlements are being pursued.