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The Barbados Consumer Empowerment Network (BCEN) is seeking clarity from the insurance sector over suggestions that premiums could rise due to the new hired car levy.
On Tuesday, the General Insurance Association of Barbados issued a statement alerting motorists, vehicle repair professionals, and hired car companies that motor insurance claims costs may increase in the near future.
GIAB’s president, Andrea Walton, said the levy, which takes effect today, is expected to significantly impact the cost of settling motor claims by increasing loss-of-use expenses by approximately 28%, adding further financial strain on insurers and policyholders.
However, BCEN’s executive director, Maureen Holder, questioned why premiums might rise when the levy affects only a small part of a motor claim.
Holder warned that at a time when many Barbadians are struggling with a high cost of living, transparency and restraint in the insurance sector are essential.
Grace-Anne Smith 
