Dear Editor,
Following the order by Chief Justice Ian Chang appointing Ms Maria Van Beek, the Commissioner of Insurance as Judicial Manager of the Clico Life and General Insurance Company (SA) Inc, Ram & McRae has been receiving enquiries from a range of persons who have various types of relationships with the company.
This appointment is the first of its kind in Guyana and Business Page of today’s date has raised a number of issues about the process. However, since the appointment is now in place we consider it may be helpful to readers if we share with them some practical guidance of a general nature on the understanding that Ram and McRae is not engaging in offering professional advice.
1. Persons who have claims with the company.
a) Lodge all outstanding claims.
b) Re-submit any claims lodged but not processed.
2. Ordinary creditors
Submit your claims as soon as possible.
3. Service providers under medical schemes including doctors and hospitals
a) Submit all outstanding claims against the company as soon as possible.
b) Re-submit any claims lodged but not processed.
c) Obtain from the Judicial Manager confirmation that all claims against the company at the date of her appointment will be settled and that the existing terms and conditions still apply to any future services.
4. Employers and Workers’ Representatives who have life, pension and medical schemes
Seek urgent meeting with the Judicial Manager about
a) the status of existing scheme, its liabilites and assets including the nature of the investments and
b) the continuation of the scheme. In those discussions ask the Judicial Manager to advise both in her capacity as Commissioner of Insurance and as Judicial Manager. Bear in mind the real possibility that it may be necessary to move the policy elsewhere. This will have actuarial implications. The Judicial Manager should also be asked to obtain clarification from the President of his undertaking to protect such Schemes.
5. Holders of life insurance policies
Confirm with the Judicial Manager the validity of the policies and the implications for renewals. We would advise that you obtain confirmation before renewing any such policies.
You may wish to ask the Commissioner about the implications for the continuation of existing policies with another company. This too will have actuarial implications.
6. Holders of general insurance policies
Confirm with the Judicial Manager the validity of the policies to the end of their terms and the implications for renewals. We would advise that you obtain confirmation before renewing any such policies.
Again you may wish to ask the Commissioner about the implications for the continuation of existing policies with another company including reduced premium for good record.
General
a) If you can afford it or if you think your case warrants it, you should seek legal advice.
b) The guidance offered by this letter is naturally subject to any further order the court makes or bulletins issued by the Judicial Manager
Yours faithfully,
Christopher Ram
Managing Partner
Ram & McRae
Chartered Accountants
