The Barbados Investors and Policyholders Alliance (BIPA) has welcomed Parliament’s approval of a $91 million payout to thousands of longsuffering policyholders of CLICO International Life Insurance Company Limited by early next year.
Last Friday, Minister of Finance Chris Sinckler informed the House of Assembly 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, the Minister of Finance said, the Central Bank would issue the bond in February and New Life Investment Company (NLICO), which is scheduled to take over the business of the collapsed insurance conglomerate, is due to begin operations on February 18, 2018, paving the way for payouts early next year.
Tabling the CLICO International Life Insurance Limited Resolution, which allows Government to guarantee bonds to facilitate the restructuring of CLICO, preserve 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.”
Today, BIPA President June Fowler was elated that much of the talk over the years was now turning into action. However, Fowler said BIPA remained mindful that there had been many missed timelines with respect to CLICO over the past ten years.
“This is a stage where we are pleased to see that we have finally gotten here. What we are doing is remaining hopeful now that the instruments have been approved by Parliament. We are now looking forward to the next phase, and this would be the issuing of the instruments by the Central Bank [of Barbados] and hopefully we would see that happen, if not by December 31, by the first week in January, 2018,” she said.
Of the $91 million to be paid out, $16.6 million is to go towards approved annuities and maturities, with $15.3 million for annuities and maturities still pending approval, Sinckler revealed in Parliament last week.
In addition, he said $11.5 million is to be paid for approved death claims, while $13.6 million in death claims are still pending approval.