Cuna Mutual, which provides life insurance through its network of credit unions in the Caribbean and other affiliates, has suspended its Family Indemnity Plan under which the lives of as many as six family members could be underwritten.

“We are going to a review, so there is a hold on,” the Jamaica Observer was informed by an agent to whom a referral was made.

Local insurers have been complaining of high claims relating to COVID-19 and deaths due to infections. However, the agent to which the Business Observer spoke did not comment when asked if the suspension was related to COVID-19.

The product was offered to members mainly through the credit union network in Jamaica and other islands within the Caribbean. In August 2021, Marcia Osborne, group HRD & administration manager, Jamaica Co-operative Credit Union League, outlined that credit union membership was 1.04 million out of the 1.26 million employed labour force. Membership, which was 1.015 million at June 2020, grew to 1.048 million at June 2021.

A representative told the Business Observer, “The plan is being revamped. When it is reactivated I will advise you.”

Other credit union sources described the plan as “suspended”, while yet another stated that it is now being “revamped”.

In partnership with CUNA Mutual Insurance Society, local credit unions offered the Family Indemnity Plan covering up to six eligible family members at rates which are comparably lower than other insurers.

A monthly premium of $422.40 is charged for a payout of $80,000 for each family member who dies; a premium of $633.60 for a payout of $120,000 per death; a premium of $792.00 for a payout of $150,000 per death; and a monthly premium of $1,320.00 for a payout of $250,000.

A premium of $2,112.00 is for a payout of $400,000 per death and a premium $3,432.00 covers each family member for $650,000; while the monthly premium of $5,280.00 will provide coverage of $1 million for each of six family members who die.

CUNA attracted members by offering enrolment which did not involve a medical, as members were simply required to complete an enrolment form and pay the first monthly premium.

Coverage took effect on the first of the month following enrolment. There was a six-month waiting period, during which only claims arising from accidental death would be paid.