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The following information was received by BIPA from the BAICO Judicial Manager at the weekend, too late to disseminate to members.
BIPA notes that the information and explanation regarding the payment of only 70% of valid claims at this time was not included in the press notices and is causing some confusion and concern among policyholders when they go to collect their cheques.
Please read the following carefully which explains the delay in payment of the final 30%.
To BIPA from KPMG, Judicial Managers for BAICO
As you know, the life and annuity portfolio of BAICO was transferred to Sagicor Life Inc. (“Sagicor”) with an effective date of April 24, 2018. The Judicial Manager of BAICO (the “JM”) and Sagicor are in the process of completing the final steps of this transaction and have already sent correspondence to policyholders notifying them of the status and value of their policies.
As per the JM’s Final Report dated March 14, 2016, the JM is responsible for payment of all outstanding claims by policyholders which were incurred prior to the Court Approval Date of December 31, 2016. To make these payments the JM intends to use the segregated premiums collected during JM, funds received from liquidating shares held by BAICO and funding from the GOB; which has already been received.
The JM has liquidated the majority of the shares held by BAICO but is experiencing a delay in liquidating the remaining shares held in Trinidad and Tobago. The JM is actively working to resolve the situation.
Given the aforementioned circumstances, the JM will distribute 70% of the amount outstanding to all policyholders within the next few weeks. The remaining 30% will be paid when the funds are received from the sale of the securities.
The JM will send correspondence to all policyholders next week notifying them that payments will be available for collection from the BAICO office from July 2, 2018. Notices will also be placed in the Nation and Advocate newspapers on July 1st and 4th notifying policyholders of payments.
The British American Insurance matter came before Judge Cornelius in the Supreme Court on Tuesday 3rd April. The hearing was intended to provide the Court with an update on progress since the last hearing on the 13th of March 2018.
Counsel for the Judicial Manager confirmed that the Financial Services Commission had approved, on March 13th 2018, the transfer to Sagicor and that Resolutions for the approval of the bond had also been passed by both houses of parliament. The Resolution for the issuance of the bonds was published in the Gazette on March 22nd. and they were due to be issued the day of the hearing, 3rd April. The Judicial Manager was therefore expecting to be able to meet a new transfer date of 24 April.
The matter has not been adjourned as the Court did not consider it necessary to do so, but the Judicial Manager will update the Court and make any further applications deemed necessary.
BIPA expects the Judicial Manager to make a formal announcement soon.
Important Policy Holder Notice – KPMG, British American
THURSDAY 11TH JANUARY 2018
RESPONSE TO ANNOUNCEMENT BY RESOLUTION LIFE
A new day has finally dawned for former CLICO policyholders whose policies have now been successfully transferred to Resolution Life, a specially formed, 100% Bajan, fully compliant insurance company, headed and managed by people with a wealth of integrity and experience in the field.
It was with unreserved joy that BIPA received final confirmation today that Resolution Life (ResLife) was ready to make the announcement of the transfer to policyholders.
BIPA President June Fowler recalls the earliest meetings held by the Alliance in February 2011, when it was felt by most of its members that they would never see their money again.
“That feeling of hopelessness has remained with many policyholders, whose lives were and have since been devastated by this debacle,” says Fowler. “But we never gave up hope, and fought with every fibre of our beings with this, the final and successful resolution, our only aim,” she adds.
BIPA thanks all those who supported the Alliance through its seven-year struggle, and especially our Financial Consultant, William Douglas, as well as Alair Shepherd QC and Sumaya Desai who have most ably advised and represented BIPA, its members and policyholders in general, attending countless meetings, as well as Court hearings, every one of which BIPA attended without fail.
As a result of the efforts of BIPA’s legal team, one of their directors, Deighton Smith, was invited to sit on the Boards of both ResLife and New Life Investment Company, which holds the former CLICO’s assets.
“BIPA is immensely grateful to Deighton for the tremendous work he has done representing us and thus all policyholders, to ensure their best interests are served at all times,” says June Fowler.
“If it took too long for many policyholders who have passed on while waiting and hoping for a resolution, I thank God that we got there in the end,” says Fowler finally.
BIPA asks policyholders to be patient and keep an eye on press releases and other information as the new company gets up to full speed in order to provide the promised first-class service.
Many policyholders are calling CLICO on 431 4677 to ask specific questions about their policies, when payments will commence, and to talk about their personal circumstances. As a result, the phone lines are often jammed.
This number has been specifically set up ONLY FOR CALLS from those in the following situations:
- Policyholders whose names DO NOT APPEAR on the list at www.clicolife.com
- Policyholders whose address on the list is incorrect
- Policyholders who have not received a letter from CLICO
- Policyholders who disagree with the figures in their letters
- Representatives of those policyholders who have died and have not previously informed CLICO.
If any of the above are unable to get through on 431-4677, they should visit the CLICO office in Walrond Street, Bridgetown (adjacent to the Supreme Court) as a matter of urgency BEFORE CLOSE OF BUSINESS ON MONDAY 13th NOVEMBER.
There will be further information available on policies, payment schedules and answers to individual questions from Resolution Life Limited following the transfer of business from CLICO.
Resolution Life will also be sending letters to policyholders shortly after the transfer of business with contact information etc.
PLEASE DO NOT CALL CLICO UNLESS YOUR SITUATION IS INCLUDED IN THE LIST ABOVE
BIPA thanks you for you co-operation as we assist with and support all measures to help policyholders get their money back.