Clico International Life Insurance
Limited – Montserrat Branch
(IN JUDICIAL MANAGEMENT)
On 2 May 2014 the Eastern Caribbean Supreme Court in Montserrat ordered that Clico International Life Insurance Limited’s (“CLICO”) Branch operations in Montserrat (hereinafter referred to as “the Branch”) be placed under judicial management pursuant to Section 53 of the Insurance Act of the Laws of Montserrat at the request of the Supervisor of Insurance.
Russell Crumpler of KPMG (BVI) Limited was appointed as the Judicial Manager of the Montserrat Branch (hereinafter referred to as the “Montserrat Judicial Manager”). We write to provide an update to Montserrat policyholders in respect of the wider Judicial Management of CLICO and, more specifically, the Judicial Management of the Branch.
Further to a report filed in the Barbados Court by the Barbados appointed Judicial Manager of CLICO we understand that he has recommended to the Courts in Barbados, Grenada, Dominica, St. Vincent and Anguilla that the judicial management of CLICO be terminated, and that a liquidator appointed.
Whilst the recommendation for the termination of the judicial management of CLICO and appointment of a liquidator is yet to be considered, we understand from the CLICO Judicial Manager that, as of 29 February 2020, all policies administered under CLICO ceased to be in effect. We understand that whilst all policies ceased to be in effect from 29 February 2020 onwards liabilities accrued to that date in respect of those policies will essentially be fixed. We further understand that this is with the intention of being able to calculate the amount owed under each policy for the purposes of potential future distributions. We expect to be able to provide further updates on the appointment of the liquidator over CLICO and the effect the liquidation may have over distributions as the process develops.
Accordingly, we provide notice to all policyholders of the Branch that any premiums received for the period 1 March 2020 to date will be returned. We anticipate that the return of those premiums paid to the Branch will be completed by the end of December 2020, and no later than 31 January 2021.
We also request that no further premiums are paid by Montserrat policyholders to the Branch either personally, or on their behalf by their employers.
Where premiums are being paid on your behalf by your employer we will also be liaising with them to ensure they are aware that no further payments should be made (and where relevant no deductions).
We will provide a further substantive update once the Barbados Court has delivered its final determination in respect of the recommendation for the termination of the judicial management and appointment of liquidator.
In the interim, we thank you for your patience. Should you have any queries in respect of this notice or the information contained therein, please do not hesitate to contact Christina Rodriguez on behalf of the Montserrat Judicial Manager at christinarodriguez@kpmg.vg.
