More CLICO payments next week

Wed, Apr 19th 2017, 08:26 AM

CLICO (Bahamas) policy holders will get some "much-needed relief" this year, according to an official notice the government released yesterday announcing that qualified policyholders will receive three tranches of payments throughout 2017, with the first beginning next week Monday.
This revelation comes four months after the government had eyed making 2017's payments. Guardian Business previously reported that government was hoping to issue the final payouts to distressed policyholders in January.
"Further to the notice to policyholders dated October 3, 2016, The government of the Commonwealth of The Bahamas has decided to continue making direct interim payments to all qualified policyholders of CLICO in a series of three tranches during 2017, to ensure that qualified policyholders receive the full benefits of their policies," the government notice states.
"The government wishes to advise that while this represents a slight change from what was previously communicated following the first interim payment exercise, this decision was taken to enable the government to more expeditiously render much needed relief to CLICO's policyholders."
The government will limit payments to only those qualified policyholders "of record" as of December 31, 2016, according to the statement.
CLICO (Bahamas) went through a court-ordered liquidation back in 2009.
The proposed payments, government said, are scheduled for April, July and November 2017, with the first tranche taking place between Monday, April 24 and Wednesday, April 26 in New Providence, and on Friday, April 28 in Grand Bahama.
The first payout took place from March 1 to June 30, 2016, encompassing approximately 3,389 issued checks, totaling just over $11 million.
This year, according to the government, policyholders will receive up to $5,000 depending on their outstanding claim balances.
"This exercise is expected to fully address some 1,595 claims or 70 percent of outstanding surrendered accounts," the government notice states.
"Policyholders are advised that any balances outstanding at the end of 2016, and not fully settled in the 2017 tranches, will be covered by promissory notes to be issued by the government and paid out over a period of four years in equal installments. These notes will bear interest at 4.25 percent per annum.
"Policyholders with in-force policies are to continue making their premium payments in accordance with their policy contracts, to ensure that they continue to receive coverage and benefits under their policies.
"CLICO's policyholders should note that the government continues its efforts, in good faith, to bring relief to those affected by the liquidation of CLICO."
The government notice explained that a further public notice on payment collection details will be announced imminently.

Click here to read more at The Nassau Guardian

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