According to a Government Information Agency (GINA) press release these recipients are in the first category of policyholders under the plan which gives first preference to policyholders with investments under $30M. Dr Luncheon told the media during a post-Cabinet media briefing on Wednesday that the payout was timely and based on the feedback from policyholders, their expectations have been reassured.
According to GINA, government made available $3.6B to finance the payout. 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. A total of 4,366 holders of executive flexible premium annuities and other undisputed claims against the company will be paid in full. The release said too large policyholders will 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.
“With most of the liabilities remaining in government agencies such as the National Insurance Scheme (NIS) the Guyana Forestry Commission (GFC), Dependants’ Pension Fund and Guyoil, government will also ensure that their interests are protected,” GINA said. Currently, Clico has immediate access to over $600M of its cash resources, $100M of which will be set aside to cover the expenses of the company until wind up and $500M to ensure that the liabilities associated with the long-term insurance business are adequately funded.
