DPM confirms talks with banks over application of insurance pay-outs

DPM confirms talks with banks over application of insurance pay-outs
Deputy Prime Minister and Minister of Finance K Peter Turnquest (FILE PHOTO)

NASSAU, BAHAMAS – Deputy Prime Minister K Peter Turnquest yesterday confirmed that he recently had discussions with the commercial banks over complaints persons have not been able to use Dorian insurance pay-outs as they have been applied to bank loan arrears.

Speaking with Eyewitness News yesterday on the issue Mr Turnquest said, “I have heard this complaint and it is a concern. In fact, I just had a conversation with the banks on this on Friday. We are concerned that insurance moneys are being put toward loan arrears rather than allowing people to use that money to repair their homes so they have the opportunity to repay their portages, continue to occupy the property and be current.  The banks have a position and a view toward this but I think that at the end of the day the whole idea of insurance is to ensure that the collateral securing the loan is repaired as quickly as possible so we don’t have compounded loss.”

Mr Turnquest added, “I would only encourage the banks to encourage the insurance industry to ensure that as quickly as possible we settle these claims so people can get back in their homes as quickly as possible and try to resume some level of comfort and normalcy. The quicker they can get into their homes the quicker they can alleviate the problem of having to find alternative accommodations to pay rent which incurs additional cost and start to pay their mortgages and get current. We understand that it is a complicated issue but again at the end of the day the whole idea behind insurance is to make collateral whole and if we stick to that premise we can move past these issues.”

In the aftermath of Hurricane Dorian, all of the commercial bank implemented Hurricane Dorian relief programs to help storm-ravaged clients jumpstart their recovery. These initiatives included loan and mortgage payment deferrals, special rate financing to assist with rebuilding and other offerings designed to help their clients in their recovery.