Government today inched closer to paying out a whopping $91 million in settlements to Colonial Life Insurance policyholders.
Minister of Finance Chris Sinckler announced at today’s sitting of Parliament that New Life Investment Company (NLICO), which will take over the operations of the fallen insurance conglomerate, will begin operations on February 18, 2018, paving the way for payouts early next year.
Tabling the CLICO International Life Insurance Limited Resolution, which would allow Government to guarantee bonds to facilitate the restructuring of CLICO, the preservation of the investment by policyholders and the transfer to real estate assets of CLICO to NLICO, Sinckler said: “We confidently expect that we will begin to have payments being made to those persons who have been affected or disaffected . . . relative to this matter.”
Of the $91 million to be paid out, the minister stated that $16.6 million will go towards approved annuities and maturities, with $15.3 million for annuities and maturities still pending approval.
In addition, $11.5 million will be paid for approved death claims, while $13.6 million in death claims are pending approval.
Over $17 million in policies had been surrendered before, and just under $13 million after, the judicial manager was appointed, Sinckler said.
He also told legislators that the judicial manager should complete transferring CLICO’s operations to Resolution Life Insurance Limited (ResLife) by December 31.
This, he said, would set the first two phases of the transfer process in motion in January 2018, which will entail the judicial manager handing over all CLICO assets and liabilities and the verification of information by ResLife.
Thereafter, Sinckler said, the Central Bank will issue the bond in February and NLICO will open its doors.
“The company will commence operations in February. Once clean and reliable data is presented, the company can then begin administering those policies on behalf of the policyholders,” he said.
Sinckler acknowledged that the transfer of the company from judicial management has been a long, exasperating process, but explained it was a complicated business.