View/download the Judicial Managers’ presentation to Barbados CLICO policyholders – October 01 2011
Welcome to BIPA
Click the play button below (>) to begin playing the audio clip:
Click to download in MP3 format (1.81MB)
Once again there is a buzz about a possible solution to the Clico issue, which as far as I see it, has weighed down the economy since September 8, 2010—that is two weeks short of a year. Last Friday, Guardian associate editor, Asha Javeed, got word that the Government’s exit strategy for the holders of the Executive Flexible Premium Annuity with investments of over $75,000 included offering them shares in an investment holding company which would be structured in a manner similar to National Enterprises Ltd. Read full article…
BARP Press Statement
30th Aug 2011
Following a recent meeting between The Barbados Association of Retired Persons (BARP) and The Barbados Investors and Policy Holders Alliance (BIPA), the Board of BARP has decided the association will be joining BIPA.
President of BARP, Edward Bushell, stated that a significant number of BARP members have policies with both Clico and British American Insurance Company (BAICO), and indeed the Association itself has investments with both companies. Bushell feels it therefore makes sense for BARP to ally itself with BIPA, which is currently planning structured legal approaches in an effort to retrieve funds on behalf of its policyholding members.
Chairperson of BIPA, June Fowler, expressed that BIPA is very happy to have BARP on Board as it strengthens the Alliance’s position and profile. The two organisations are looking forward to working together in the interests of their respective members.
BARP is encouraging those of its members who are Clico and BAICO policyholders, some of whom have invested their life savings in the two troubled companies, to join BIPA as individual members as soon as possible so that their interests and rights can be more effectively represented. More information on membership of BIPA can be found atwww.thebipa.net or by calling 230-1026.
In Attached Photograph BARP BIPA meeting; from left to right; Stanley MacDonald Vice Chairman BIPA, Alphea Rock Wiggings Executive Manager BARP, Edward Bushell President BARP, June Fowler Chair Person BARP, Peter Marshall Secretary Treasurer BIPA.
Please be reminded that you can call the Financial Services Commission to make an appointment for viewing the CLICO Interim Report:
Tel: (246) 437-3924
Tel: (246) 437-3930
Click the link below to download the Group Allocation Form in Excel format:
By JADA LOUTOO Friday, August 5 2011
INSURANCE giant, Colonial Life Insurance Company (Trinidad) Limited (CLICO) has paid out hefty sums — amounting to millions — to two regional banks, after a default judgment was entered against the company in the local courts.
CLICO had been taken to court by the Bank of Nevis (BN) and Bank of Nevis International (BNI) Limited for the full repayment of all outstanding principal, and interest payments.
Both banks held Executive Flexible Premium Annuity policies.
The banks lawsuits were dated May 17, 2010, and judgment was awarded in default of appearance by Clico’s attorneys on June 14, 2010.
It was ordered that Clico pay BNI the sum of 550,003 British Pounds sterling; 851,189 Euros, and US$2,000,010.55 while the insurance company, which was placed under direct control of the Central Bank in 2009, was ordered to pay BN 150,002.25 British Pounds and 200,000.25 Euros.
On July 8, 2010, Cental Bank filed an application seeking to have the default judgment set aside. As part of its argument, Clico maintained that BNI was not entitled to the payment of the US$$2,000,010.55 sum under the EFPA policy as the guaranteed interests rate was two percent, and not eight, as the bank sought to surrender the EFPA on March 17, 2010, and not March 18, 2010, which was the calculated maturity date for the policy.
In an apparent change of heart, Clico was given leave on October 10, 2010, to withdraw its objection to the default judgment, and agreed to pay.
According to the Banks’ consolidated financial statements for the year ended June 30, 2010, noted that at the time of approval of the statements, all payments had been honoured.
This about turn by Clico is now troubling EFPA policyholders, who are now questioning a recent decision by Finance Minister, Winston Dookeran, to appeal a similar judgment of the high court which compelled the insurance company to pay six EFPA policy holders more than $58.7 million.
In a statement issued recently, the ministry said it was proceeding with appealing the ruling of Justice Maureen Rajnauth-Lee, who ordered that the six EFPA policyholders get back their investments in the failed insurance company.
Justice Rajnauth-Lee had ordered the insurance giant to pay the six EFPA policyholders after they sought judicial intervention to recover millions in investments they held in the insurance company. The claimants in the lawsuits were the St Christopher and Nevis (St Kitts and Nevis) Social Security Board — the equivalent to TT’s National Insurance Board; businesswoman Vindra Amar, attorneys Alvin Fitzpatrick, SC, and Lesley Ann Lucky-Samaroo as well as Darryl Arthur Goede and David Knott.
The six complained of breach of contract after their attempts to cash-in their policies were denied following Central Bank’s suspension of the insurance company’s activities following the company’s collapse in January, 2009. CLICO’s contention was that the Central Bank’s suspension also suspended their obligation to pay policyholders.
Last year, Dookeran announced a plan to deal with Clico policyholders and the holders of what he called short-term investments/deposits.
Short-term investors with $75,000 and less would get their funds repaid completely.
However, 15,000 investors with more than $75,000 would be paid through a Government IOU amortised over 20 years at zero percent interest. At a post-Cabinet media briefing last week, Dookeran noted that the issue of the payment of Clico customers remain subject to the drafting of a bill to approve a new plan to work out the discount rates for billions, in bonds to be provided.
In March, Government said it had paid out approximately $33 million to CLICO policyholders who invested in the high-interest bearing EFPA financial instruments, with contracts valued at $75,000, or less. CLICO’s EFPAs were short-term deposit instruments which had 25,000 customers, and had liabilities of about $12 billion, Finance Minister Winston Dookeran said last September. The Commission will continue in September.