Laing clears up misinformation around CLICO policy holder payout
In an exclusive interview State Minister for Finance Zhivargo Laing yesterday moved to clear up rumors that CLICO policyholders could expect a payout in the new year.
“There is some confusion about payments for CLICO policyholders,”he toldGuardian Business yesterday. ”Policyholders don’t get paid until someone actually dies and so the policyholders would not get paid in the way severed workers were paid.
“What has happened with CLICO policyholders is the liquidator is seeking to have their book of business sold to another company, and in effect have their policies continue on as normal,[and]in the event the policyholder dies their beneficiary would get the policy.
“My understanding is when the policy falls due or when someone gets sick and claims are made against the insurance, there is an agreement between the liquidator and the courts as to what can be paid out at any given time and if there is need for higher than that to be paid, then the liquidator will seek the cost permission in those circumstances to do so.”
Laing also talked about the number of annuities holders in that book of business.
“They only get their annuities when they mature,”he said.”The effort is to sell that book of business to a company so it continues on as normal. The government has agreed to guarantee up to a certain point or level, so that if the company that buys the business does not have the means of honoring a policy when it comes due, the government wil step in and do so.”