Since the recent commencement of payout to policyholders of the CLICO Life and General Insurance Limited (CLICO), approximately 150 policyholders have retrieved their assets. The recipients are in the first category of policyholders to get back their assets in full under a rescue plan outlined by President Bharrat Jagdeo which gives first preference to policyholders with investments under $30M.
Head of the Presidential Secretariat Dr. Roger Luncheon told the media during a post-Cabinet media briefing yesterday that the payout was seen as timely; and based on the feedback from policyholders who made successful transactions, their expectations have been met.           
Cabinet was also advised on the “futile” efforts of some to derail the payout process. On September a bomb scare was reported at the CLICO Camp Street office, halting the process which eventually resumed.
The government, in a statements, strongly condemned the attempt to “delay and frustrate” the ongoing process.
The Guyana Government made available $3.6B to finance the payout. About $2.7B will be used to pay off in full all holders of investment annuity policies, and other insurance liabilities not in dispute, subject to a maximum limit of $30 million per policyholder.
A total of 4,366 holders of executive flexible premium annuities and other undisputed claims against the company will be paid in full
Large policyholders of the company will be given support and a remaining $900M will be utilised to pay these policyholders up to a maximum of $30M each, with priority given to institutional policyholders.
With most of the liabilities remaining in government agencies, such as the National Insurance Scheme (NIS), the Guyana Forestry Commission (GFC), Dependants’ Pension Fund and Guyoil, government will also ensure that their interests are protected.
At present, CLICO has immediate access to over $600M of its cash resources, $100M of which will be set aside to cover the expenses of the company until wind up, and $500M to ensure that the liabilities associated with the long-term insurance business are adequately funded.
On September 10, Chief Justice Ian Chang ruled that CLICO be wound up and that the Bank of Guyana be appointed liquidator for the purpose of executing the order for the company’s winding up.
The ruling complements Government’s efforts to ensure that the company is wound up so that there is an orderly resolution of the difficulties it encountered and that the public’s interest is protected. (GINA)