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.