SINCE the recent commencement of payout to policyholders of the CLICO Life and General Insurance Limited (CLICO), in excess of 1000 transactions have been successfully completed.
Head of the Presidential Secretariat Dr. Roger Luncheon at the time of his post Cabinet media briefing on October 6 said that 150 transactions are occurring on a daily basis. 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 policy with investments under $30M.
Dr. Luncheon said that the payout was seen as timely and based on the feedback from policyholders who made successful transactions, their expectations have been reassured.
“They have expressed appreciation that their promises and the engagements entered into have all been realized,” Dr Luncheon said.
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 policy holders.
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)