(Trinidad Guardian) Five policyholders with the Colonial Life Insurance Company (Trinidad) Ltd (Clico) have sought judicial intervention over the Minister of Finance’s intended payout plan for policyholders in the 2010-2011 budget presentation. The lawsuit follows a legal threat issued by Executive Flexible Premium Annuity (EFPA) policyholders at the end of September, last year. Filed at the registry of the Hall of Justice, Port-of-Spain, Tuesday, the lawsuit seeks determination of the trust created to cover the liabilities of the policyholders. Clico, the Central Bank and Republic Bank Ltd are named as defendants in the lawsuit which also seeks to determine whether the bodies had the authority to separate and exclude EFPA holders from being beneficiaries under the trust.
EFPA policyholders — Percy Farrell, Marina Inalsingh, Professor Gordon Rohlehr, David Dayal and Michael Alexander — brought the action in response to the proposed payout plan announced by Finance Minister Winston Dookeran in his budget speech on September 8, last year. The claimants are seeking, among other reliefs, to have Farrell appointed to represent all EFPA policyholders who are entitled to received money under their respective policies but who have rejected the payout plan. On September 30, 2010, Dr Claude Denbow, SC, authored a pre-action protocol letter which was addressed to Central Bank Governor Ewart Williams and Inspector of Financial Institutions Carl Hiralal.
In that letter, the five claimants had cautioned the Government to desist from implementing its payout plan which substituted the earlier promise to bailout Clico and honour policies. Dr Claude Denbow had explained that his clients and other EFPA holders had “reasonable expectation,” based on the promise made by former Finance Minister Karen Tesheira in February, 2009 when she announced the bailout of Clico. In the plan originally outlined by Minister Dookeran, all EFPA policyholders of Clico would be paid an initial sum of $75,000 and the balance would be paid over 20 years by issuing Government bonds with zero interest rate.
Dookeran’s current plan is to pay those with investments of $75,000 or under the full value of their investments. Denbow had deemed the proposed plan to be “oppressive, unfairly prejudicial to, and in unfair disregard of their interests as creditors of Clico.” Denbow is expected to lead a team of attorneys which includes Dharmendra Punwasee and Donna Denbow.
