Clico policyholders who take state $$ can't sue: AG Ramlogan

Any CLICO policyholder who accepts the payout proposed by the government of Trinidad and Tobago will not be able to sue the State afterwards.

Attorney General Anand Ramlogan outlined the position to reporters Monday. However, Deputy chairman of the CLICO Policyholders Group, Peter Permell, is checking to see if such a clause is legal.

Ramlogan said once the policyholder agrees to accept the monetary offer, the State purchases the right of any legal claims against CLICO or any of its entities.

"In exchange for purchasing those rights you will be losing or foregoing your right to take any action against the entity or the State itself. 

"It's a straightforward commercial transaction whereby the government is offering to purchase the rights or the claims they may have legally against the insolvent institution," Ramlogan explained.

He noted further that the claims by themselves are worthless because they are against an insolvent institution,

The government has offered a lump-sum payment of $75,000. Where people have more than that amount, the government will give IOUs over a 20-year period with no interest.

The payout was supposed to be completed before the end of the year but Finance Minister Winston Dookeran told reporters on Saturday there is a delay because of administrative matters. He expects people will get their money in January.

The CLICO Policyholders Group has advised people who have up to $75,000 in CLICO to take the money but it has insisted that it will proceed with legal action against the state on behalf of the others.