The Tribune

By RASHAD ROLLE

Tribune Staff Reporter

rrolle@tribunemedia.net

THE Ministry of Finance announced yesterday that it will make direct interim payments to qualified policyholders of CLICO in a series of three tranches this year “to ensure that qualified policyholders receive the full benefits of their policies.”

This is the latest development in the long-running effort of CLICO policyholders to get the money owed to them.

Eight years ago, the life and health insurer collapsed into insolvency.

Last October, the government unveiled a proposed resolution with promises of payment by November.

The government has already paid $11m to CLICO policyholders.

In its statement yesterday, the government said the payments it will make “will be limited to the qualified policyholders of record as of December 31, 2016.”

“The government wishes to advise that while this represents a slight change from what was previously communicated following the first interim payment exercise, this decision was taken to enable the government to more expeditiously render much needed relief to CLICO’s policyholders,” the statement noted. “The proposed payments are scheduled for April, July, and November 2017, with the first tranche scheduled to take place between Monday, April 24, 2017 to Wednesday, April 26, 2017 in New Providence and on Friday, April 28, 2017 in Grand Bahama. Policyholders should note that a further public notice on payment collection details will be announced imminently.”

Qualified policyholders will receive up to $5,000 with respect to their outstanding claim balances, the government said. Through this exercise, some 1,595 - or 70 per cent of the claims – will be addressed.

“Policyholders are advised that any balances outstanding at the end of 2016, and not fully settled in the 2017 tranches, will be covered by promissory notes to be issued by the government and paid out over a period of four years in equal instalments. These notes will bear interest at 4.25 per cent per annum. “Finally, policyholders with in force policies are to continue making their premium payments in accordance with their policy contracts, to ensure that they continue to receive coverage and benefits under their policies. CLICO’s policyholders should note that the government continues its efforts, in good faith, to bring relief to those affected by the liquidation of CLICO.”

Bishop Simeon Hall, a CLICO policymaker and prominent activist on behalf of other CLICO policymakers, praised yesterday’s announcement.

“It was former Prime Minister Hubert Ingraham who told policyholders to continue paying,” Bishop Hall said. “But anything to bring resolution to this debacle is commendable in my estimation. Even though it has been prolonged and inordinate I want to commend the government for bringing some conclusion to this matter.”