Frustration is said to be mounting among CLICO policyholders as they await the Supreme Court’s final approval of the transfer of their policies to a new company, Resolution Life Insurance Limited (ResLife).
In a statement Thursday, the Barbados Investors and Policyholders Alliance (BIPA) revealed that all parties concerned had met and finalized the details of the transfer agreement.
However, BIPA also said while it was hoping that payments could be made to its members as early as October or November this year, the deal was yet to receive the final blessing of the court, which was notified of the accord through its Registrar last month and again earlier this month.
“We appreciate that the backlog at the Supreme Court is causing all manner of problems,” BIPA President June Fowler said in the statement in which she deemed it “extremely unusual for us to have to wait so long to be heard, especially at so crucial a stage in the process that affects more than 20,000 Barbadians”.
Government has allocated close to $30 million in this year’s Estimates of Revenue and Expenditure for the payment of the first tranche of its $300 million debt, which is to be repaid over ten years.
Of the sum, $25 million has been set aside for CLICO policyholders and $4.9 million for investors in its sister insurance company British American Insurance Company (BAICO), following the collapse of both institutions back in 2009.
Last December, High Court Judge William Chandler approved the transfer agreement between CLICO and the two companies which would take over its business, ResLife and its holding company New Life Investment Company Inc (NLICO).
With that Fowler was hoping that the transfer of BAICO’s business to Sagicor would have been completed by May 31, 2017. However, that matter is still tied up in the courts, with Sagicor raising several concerns, including about Barbados’ recent economic downgrades “and the likelihood of a credit event in the near future”.
“So it would appear that everything now is going to be put on hold until this situation with Sagicor is resolved,” she said after the matter came up for hearing in the High Court earlier this month.