CLICO jobs may be in jeopardy

Feb 27, 2009 News

Commissioner of Insurance, Ms Maria van Beek

– future of company uncertain

The operations of Colonial Life Insurance Company Guyana (CLICO) will be dependent on the decisions by Commissioner of Insurance, Ms Maria van Beek, who was deemed Judicial Manager by the High Court early yesterday morning.
This appointment followed moves by the government to secure the assets of CLICO (Guyana).
President Bharrat Jagdeo, meeting the press yesterday, at Office of the President, disclosed that Ms van Beek has already taken control of CLICO.

He added that insurance agents of the company have been instructed not to sell any new policies, a decision which, according to reports, has left staffers querying about their future within the company.
“We feel that once the Commissioner is there then she could easily get a better feel for the situation.
Being in charge of the institution she could very well decide that we will approach the Court to wind up the institution or she may decide that we need to operate this institution for a while to ensure that policyholders are protected…”
President Jagdeo pointed out that at the moment there are a number of instruments through which the policyholders have invested in the company, some of which have short maturity periods or very long maturity periods.

He divulged further that some policyholders were only recently afforded annuities. All other policyholders will be contacted as the need arises, he said.
In light of the current situation, the President disclosed that Ms van Beek will be tasked with deciding which current range of investments will be settled forthwith and which will take a much longer time.
At the moment, the President disclosed, CLICO Guyana still has some liquid assets, adding that efforts will be made to decide how these will be used in the quest to protect policyholders.

“The approach could see a functioning institution for several years, (or) winding it up, selling off some of the policies to other people, or even transferring them to other companies.
There are a whole range of options that are available to the judicial manager…” the President noted.
Ms van Beek said that she will be reporting her findings within the institution to the Court since her primary purpose is to report and make recommendations with regards to the most needful course of action.
“I have to make an assessment and it depends on what the court orders because I am following the direction of the court…”

Van Beek, according to the President, will ultimately be able to pronounce on the future of the staffers and the way in which the company will operate.
She was expected to brief staffers yesterday and to disclose plans relating to their future within the organisation.
This newspaper has, however, not been able to ascertain whether retrenchment will be one of the options considered as it relates to staff although they have been forbidden to proceed with their normal work routine.

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