Elgin says country could benefit from taxing insurance adjustors

PHILIPSBURG–St. Maarten Insurance Association (SMIA) President Dwayne Elgin said on Thursday that the country could benefit from collecting taxes from insurance adjustors.

He said whether adjustors pay taxes locally was one of the issues discussed with government recently. “We recognise that this is an area where the country can benefit, and we encourage Government to pursue this area,” Elgin told Members of Parliament (MPs) during a meeting of Parliament’s Finance Committee.

“I don’t know what is the status of such actions by Government, but as far as we are concerned we have entered into these agreements with adjustors and they are expected to pay their share of local taxes.”

The majority of adjustors operating in St. Maarten are independent parties, whether local, regional or international. Insurance companies usually enter into agreements with independent adjustors to adjust claims from their clients and adjustors are usually paid a percentage of the adjusted loss per client. According to Elgin, at the time of a catastrophe, it is impossible for insurance companies to use solely local adjustors because of the magnitude of damage and claims expected.

Also at the meeting were SMIA Vice President Olivier van de Gevel (Guardian Group), Secretary Cynthia Rotsburg (Caribbean Alliance) and members Soraida America and Dwight Cunningham.

Source: The Daily Herald https://www.thedailyherald.sx/islands/73531-elgin-says-country-could-benefit-from-taxing-insurance-adjustors