Saturday, February 13, 2016

CLICO policies will not change

Central Bank Governor Jwala Rambarran is assuring traditional policyholders of insurance company CLICO that the terms and conditions of their policies have “not changed at all”.

“CLICO will continue to pay your monthly pension, honour your health and life claims, renew all group and health and life contracts, and receive and process your premiums. CLICO will continue to provide you with the same excellent service to which you have always been accustomed,” Rambarran said in an 

e-mailed statement yesterday. 

The latest statement comes after the Bank issued a release on Monday, clarifying media reports that CLICO was for sale. 

Rambarran said the Central Bank’s plan for the resolution of CLICO has always included the transfer of the “traditional” insurance portfolio to a third party insurance company, and as such, this group of policyholders was not included in the pay-out arrangement by the government, but has continued to be serviced by CLICO. 

“As a first step in the transfer of the portfolio, an independent valuation is being performed in accordance with the Central Bank Act. Following this exercise, the market will be invited to make offers for the portfolio through an open and transparent process,” he said.

The preferred buyer must meet the Central Bank’s requirements, including capital and “fit and proper” requirements, he added.