PORT OF SPAIN — Somebody should have gone to jail over the CLICO fiasco, Opposition Senator Terrence Deyalsingh said yesterday.
“Somebody shoulda make a jail, as we say in local parlance,” Deyalsingh said during his contribution to the Insurance Bill 2013 in the Senate.
Finance Minister Larry Howai yesterday said the Insurance Bill 2013 is proposing a penalty of $10 million and 10 years imprisonment for the directors of insurance companies found guilty of fraud.
Deyalsingh said the country should have learnt from the previous failures of companies.
“The problem we are being faced with now in Trinidad and Tobago is that the horse has already bolted from the stable and we are now trying to close the stable doors,” Deyalsingh said.
The proposals of the Insurance Bill 2013 are aimed at preventing another CLICO fiasco, Howai said.
Deyalsingh said too stringent measures could stifle the insurance industry, while too lenient measure could create “mavericks”.
“How do we balance those competing interest of too much legislation which stifles the industry and too little legislation which gives rise to mavericks,” Deyalsingh said.
“The balancing act is a very delicate one because if we go too far to one extreme we stifle growth, if go too far to the other extreme we create the mavericks,” he said.
He said there should be harmony with all the financial legislation in terms of penalties.
The Insurance Bill 2013 has been sent to a Joint Select Committee. (Express)