Insurance in Dominica

Insurance transfers a defined financial risk to an insurer in return for a premium. Common classes in Dominica include long-term insurance such as ordinary and industrial life cover, and general insurance such as motor, marine, aviation, transport, property, personal accident, liability and pecuniary-loss cover. Life, group life, property, liability and motor policies are available through licensed providers, but product availability and conditions vary by insurer and policy. The formal social-insurance system is administered by Dominica Social Security (DSS) and the Social Security Board. Working people generally have to register from age 16 until pensionable age 65. Non-nationals are included, except for categories such as diplomatic personnel or people covered under reciprocal arrangements. Employees contribute 6.75% of gross income. Employers contribute 8.00% when the redundancy contribution is included, or 7.75% when it is excluded. Employers normally pay contributions by the 14th day of the following month; late payment attracts a 10% late fee. Self-employed contributors generally pay quarterly. DSS benefits include sickness, maternity, employment injury, medical expenses, disablement, death, age, invalidity, survivors and funeral benefits. Short-term benefits can last for up to 26 weeks and are generally calculated at 60% of average weekly insurable earnings (AWIE). An age pension requires at least 500 credits. Voluntary contributions mainly support access to long-term benefits. These statutory benefits are separate from private life, accident, property or liability policies. Private insurance is regulated by the Financial Services Unit (FSU) of the Ministry of Finance. The Director of the FSU acts as Registrar of Insurance. A market listing dated 1 October 2025 recorded eight general insurers, Lloyd's Underwriters, three life insurers, three composite insurers, four brokers and two adjusters, along with registered agents and sales representatives. Regional and foreign providers dominate the market. A person or company that is not listed or otherwise authorised is not permitted to provide regulated insurance services. The FSU register should therefore be checked before a policy is purchased. Intermediaries must display their registration certificate, and brokers and adjusters must maintain professional indemnity insurance. Insurance can be purchased directly from an insurer or through an authorised agent or broker. The provider should identify the insured risk, exclusions, deductible, insured amount, premium, payment schedule, claim procedure and cancellation terms. There is no publicly identified uniform consumer tariff or general claim-settlement deadline in the reviewed sources. Premiums depend on the policy, the insured risk, the insurer and the selected limits. An insurer's EC$50,000 annual licence fee for each long-term or general class is a regulatory charge on the insurer, not a standard consumer premium. Long-term applicants receive specific disclosure protection. The insurer must provide information about the nature and type of the policy and a withdrawal form no later than seven days after the application. Policy documents must be supplied within 30 days. An industrial-life policy can generally be challenged in writing within 28 days, followed by premium refund and cancellation under the statutory process. For a general policy statement, a fraudulent untruth or a statement material to the risk can affect the policy's validity. Applicants should disclose material risk facts accurately and keep copies of applications, schedules, certificates and payment records. Motor insurance has a specific compulsory requirement. Third-party risks cover is required for using a vehicle on a public road, and the driver must carry an insurer-issued certificate. The statutory liability framework provides up to EC$200,000 per person and EC$1,000,000 per accident for death or bodily injury, up to EC$100,000 per claim and EC$500,000 per accident for property damage, and up to EC$25,000 per person for hospital expenses. The first EC$250 of a claim is not necessarily covered. Comprehensive or own-damage cover is optional and applies only according to the policy. To make a claim, the policyholder should notify the insurer or authorised intermediary through the procedure and timing stated in the policy. The insurer or an adjuster examines the damage, documents, coverage, exclusions and deductible. Insurers must maintain reserves for outstanding claims, claims incurred but not reported and catastrophic losses, but that reserve requirement does not guarantee payment of every claim. The reviewed primary sources did not identify a general statutory notification deadline or a public insurance ombudsman. The FSU provides a Customer Complaint Form. The Insurance Appeals Tribunal concerns appeals against Registrar decisions and does not automatically decide an ordinary dispute about an insurer's claim assessment; unresolved matters may require settlement discussions or proceedings in the High Court. Property and business policies matter particularly where catastrophe exposure affects the insured risk. The policy wording determines whether damage, interruption, liability or other losses are covered. A policyholder should check exclusions, deductibles, valuation rules, maintenance duties and required proof before relying on cover. Local policies are governed by Dominica law and the courts of Dominica unless their lawful terms provide otherwise. Life-policy changes follow specific rules. After at least three years of premium payments, a policyholder may be able to request paid-up status or a surrender value. For ordinary life insurance, non-payment after that period involves notice, a 28-day payment period and at least 30 days after service before forfeiture. Industrial-life grace periods are generally four, eight or twelve weeks depending on whether premiums have been paid for less than one year, one to two years or more than two years. Beneficiary and assignment changes normally require written instructions and may also require consent under the policy. An assignment must be recorded in writing and notified to the insurer; transfer in the insurer's register requires a written request and the insurer's consent.