Policy holders of the collapsed Clico Guyana will soon receive appoinment dates, implementing the decisions announced by
President Bharrat Jagdeo last Thursday . Government injected $3.8 billion dollars to ensure policy holders are repaid.
Finance Minister, Dr. Ashni Singh ,in a recent panel discussion stated that government has been engaged at every stage in the process to safeguard the assets of the insurance company and to ensure that they were managed in a way that was consistent with the provisions of the Act governing judicial management.
The Government says it has great concern for the large number of Guyanese who would have been affected, had the matter not been properly handled.
Thursday last, President Jagdeo rolled out a rescue plan that guarantees refunds to all those who were affected by CLICO’s financial debacle.
The Head of State explained that policyholders with investments in the company less than $30M as of February, 2009, will be repaid in full.
The Guyana Government will make available $3.6B to finance the payout which President Jagdeo assured will be executed within weeks. About $2.7B will be used to pay off in full all holders of investment annuity policies and other insurance liabilities not in dispute, subject to a maximum limit of $30 million per policyholder.
According to the Head of State, a total of 4,366 holders of executive flexible premium annuities and other undisputed claims against the company will be paid in full.
The 39 large policyholders of the company will then be given support and a remaining $900M will be utilised to pay these policyholders up to a maximum of $30M each, with priority given to institutional policy holders.
