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Tuesday, March 3, 2009
Bahamas Prime Minister Hubert Ingraham addressed Parliament about CLICO Bahamas Limited. The company went into liquidation because it was unable to pay US$2.6 billion to policyholders and its liabilities were $9 million in excess of its assets.
The PM said that CLICO's sales staff of 90 has been advised not to report for duty, as the company is not writing any new business. However, that the administrative staff of 51 persons remains in place and at work, he stated.
Craig Gomez of Baker Tilley was appointed as Provisional Liquidator of CLICO (Bahamas) Limited by the Bahamas Supreme Court.
The Prime Minister told Parliament, The overriding evidence suggested that in order to protect the policyholders, numbering some 23,000 in The Bahamas and 29,000 in the region, which is the ultimate responsibility of the Registrar of Insurance Companies, steps had to be taken to ensure that the assets of CLICO were not further compromised.
The question on many policy holders mind is whether or not they would lose their money. To answer this Ingraham said, "It is still too early to determine whether or not policy holders will lose any money. However, it is quite possible that all the policies can be sold to a viable insurer here in The Bahamas.
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