Colonial Insurance has become the first local insurance company to accept credit cards for premium payments.

As of today, the company will accept the Bank of Bermuda's Bermuda Card and all Visa and MasterCards.

Mr. William Madeiros, Colonial's business development manager, said it would be of particular benefit to the firm's motor and property customers, although credit cards can also be used to pay for Colonial life and medical coverage.

"People who are pushed for time can phone in their credit card numbers and have the relevant documents posted to them,'' he said. "It is a great time saver.

"The new method of payment will also benefit people who might be struggling to find the cash to pay for a premium.

"If they pay by credit card, they will have 30 days in which to pay off the amount, which can be a great advantage, particularly in these economically difficult times.'' Colonial is the largest insurer of motor and property in Bermuda. Over the last 18 months it has expanded into the medical and life areas of insurance.

Mr. Madeiros added: "We are constantly and aggressively looking at ways to improve our service to our customers. We believe credit card payment is a major step forward.''