Still no joy for CLICO policyholders

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.

5 Responses to Still no joy for CLICO policyholders

  1. Mark Adamson June 16, 2017 at 7:41 am

    This bailing out of these policy holders is one of the very fundamental reasons why the People’s Democratic Congress (PDC) is diametrically and unflappably opposed to TAXATION.

    Morever, a certain future coalitional government of this country – and of which PDC is part – shall abolish TAXATION in this country – thus helping to liberate the people of this country from this very evil and wicked scourge.

    It is egregrious and monstrous that the Minister of Finance of the government of Barbados has gone and led the way in assuring (reportedly) these CLICO and British American Insurance policy holders, that this government will make sure they get at least the equivalent of the principals they invested in these failed CLICO
    Holding companies.

    Now, here is it that those policy holders – at whatever times – took the personal financial risks involved in investing in these companies, in pursuance of their own private, self-interest. At whatever times they and the representatives of those particular CLICO Holding companies agreed on the terms of their contracts, the advice nor the involvement of the public was not to be. In 2009, it was seen that these companies – through proven fundamentally bad management and corruption here and in Trinidad and Tobago, were to flounder.

    So, this very incompetent Minister of Finance – in a case where these companies had failed and these policy holders had long known the risks of failure of these companies were always there –
    decided – a few years ago – to unwantonly and unnecessarily use the governmental system, this evil, wicked TAXATION system, the credit capacity of this local core financial system, to illogically bail out these people, and – attendant to such – to form some kind of successor company.

    What stark madness!!!!

    Now, the government’s debt has increased and TAXATION has increased as a consequence of these acts of gross misrule and misgovernance.

    We will forever denounce this Minister of Finance for leading the way in the bringing about of this crass misrule and misgovernance, esp. in cases where these policy holders failed to
    exercize reasonable care in monitoring their own CLICO/BAICO
    financial investments, and therefore should simply have been
    entitled to sharing the remnants of CLICO Holdings assets, or any money proceeds derived from any disposing of them,
    amongst themselves, however much they would have got.

    Reply
  2. Ray Yearwood June 16, 2017 at 2:01 pm

    Repaid over 10years.Wow that is a long time.
    Some Policyholders have died already with the collapse of Both Clico and BAICO.
    How long do they expect people(Policyholders)to have to continue to wait?
    Insurance Companies love to collect money($$$$$) but when it comes to paying out money($$$$$)it is always a problem.
    I really do understand how fed up, frustrated,mad the Policyholders are.
    Having not to get their dues(Pensions,Graturities,Investmens and so on).

    Reply
  3. Buun June 16, 2017 at 3:06 pm

    This is all talk to them, they done know you can’t get back your money.

    Reply
  4. Buun June 16, 2017 at 3:37 pm

    The DLPs have a mental disease call EXCUSITIS!

    Reply
  5. Fagan Stephen June 20, 2017 at 10:38 am

    How long again for Dominican policy holders have to wait to receive what belongs to them from Clico.

    Reply

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