JUCDA, JIIC forge auto policy partnership
Jamaica Used Car Dealers' Association (JUCDA) has forged a partnership with the The Jamaica International Insurance Company (JIIC) that will give buyers of their cars a discount on insurance, plus other niceties, to drive business for both parties.
The new JIIC Premier Auto product was launched Wednesday.
"Customers who are referred to JIIC by a used-car dealer will get a 10 per cent additional discount on their premium - and I mean 10 per cent on top of those 60 per cent no claim, or those loyalty discounts," said Winsome Gibbs, business-development manager at JIIC.
Gibbs said customers who sign up with JIIC would also get the free use of a vehicle for seven days in the event their car is stolen or rendered dysfunctional due to an accident.
Gibbs told Sunday Business that the partnership was strategic for the company, which is a subsidiary of the GraceKennedy group.
The car market, which tanked about 60 per cent last year, is now more driven by affordability.
The cheapest deals are in the used-car sector.
"We recognise that with this recession and everything that is happening, persons are not able to afford the high-end vehicles," the insurance executive said.
The demand now is for cars priced at around $1.5 million.
"We realise that there is a real market out there. In addition, JIIC recognises the hard times that customers are having, and so we feel that if we can offer something by way of discounts ... this is a big thing," she said.
Gibbs said the company expects to land at least 10 per cent of sales made by used-car autodealers.
"That would be a big achievement for us as a company because last year, they sold 11,000 cars. So if we can get 10 per cent of that - and I am hoping that the sales go up - that would be good for us," she said.
Under Ian Lyn's presidency of JUCDA, the association has been forging strategic business alliances to position the sector for business.
The association recently announced a partnership with Scotiabank Jamaica, for example.
"What this means is that the customer has the best option to choose," Lyn said.
"The bank is there and now we are having representatives from the insurance company there so when the customer comes in it is easy (to transact business), and that is what it is all about - making life easier," he said.
JUCDA will earn $1,000 off each successful referral.
JIIC's sales representative will also receive a commission of $2,000 per comprehensive policy for new clients, the partners announced Wednesday.
The first 100 customers who sign up will also get a spa treatment from Adam and Eve.
Auto sales representatives who make these transactions will also get a spa treatment once they refer a customer to JIIC.