Clico policyholders now protected under Insurance Companies Statutory fund

Finance Minister Winston Dookeran told legislators on Friday all Clico policyholders are now protected by a guarantee under the Insurance companies Statutory Fund.

He made the disclosure in answering a question from opposition MP Colm Imbert who wanted the government to explain what it is doing to deal with the difficulties that Clico EFPA policyholders face.

Dookeran explained that the capitalisation of Clico's Statutory Fund is now stable.

"The 225,000 policyholders under Clico now have the assurance that their policies are protected in the Statutory Fund," the minister disclosed.

Dookeran said there have been 250 "compassionate" case in which people were able to get monies amounting to $25.6 million.

He also announced that credit unions and trade unions with a total of 158 policies with Clico, amounting to $788 million, will be paid their monies over the next two years.

However, he acknowledged that there still remains the issue of the payout of the EFPA policyholders.

"The only part of the solution still to be resolved is the discount rate with respect to the 15,000 deposit holders who have more than $75,000 and who have not yet accessed the compassionate fund," he said.

The Finance Minister said the Government remains open to suggestions on how to reduce the discount rate for those policyholders to access their 20-year bonds.