Further to the Notice to Policyholders dated October 3rd 2016, The Government of the Commonwealth of The Bahamas (“the Government”) 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 has determined that these scheduled payments will be limited to the qualified policyholders of record as of December 31, 2016.
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 proposed payments are scheduled for April, July, and November 2017, with the first tranche scheduled to take place between Monday, April 24, 2017 to Wednesday, April 26, 2017 in New Providence and on Friday, April 28, 2017 in Grand Bahama.
Policyholders should note that a further public notice on payment collection details will be announced imminently.
Qualified policyholders will receive up to $5,000.00 with respect to their outstanding claim balances. This exercise is expected to fully address some 1,595 claims or 70% of outstanding surrendered accounts.
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% per annum.
Finally, 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.