Broker reviews position in light of President’s guarantee

Mar 06, 2009 News

Bishwa Panday

Insurance broker Bishwa Panday in a statement to this newspaper yesterday stated that the warning letter to his clients was sent out prior to the President’s guarantee on all Colonial Life Insurance Company, CLICO (Guyana) policies. He said that he has since reviewed his position.
Panday, of P&P Insurance Brokers, had issued a letter to his clients prior to the President’s last pronouncement advising clients that, coming out of a meeting with Commissioner of Insurance Maria van Beek, it was clear she can give no guarantees on the way forward as to the financial position of Colonial Life Insurance Company (CLICO).

That meeting was held last Monday.
Panday had advised that it would be risky for clients to rely on CLICO to honour any claims that may be made in the future, and recommended that coverage be alternatively placed.
The meeting between Panday and van Beek occurred some four days after she was appointed Judicial Manager of the Company, subject to a court order.
During a press briefing prior to his departure for a Climate Change conference in Washington DC, the President said that persons who have insurance policies at CLICO should continue paying their premiums, given that the company could guarantee all claims, whether medical or vehicular.

“So persons are to continue paying premiums regardless of what they are seeing… Even the cheques that are in limbo, and many people who have received these cheques and are waiting, just give us a few days more to go through that issue… But know that the money will not be lost…In Guyana people are not going to lose their money. We had no intention to deceive, and now that they have sold policies to people the Government has taken different steps from the Bahamas.”
Panday said that he was encouraged by the statements by the President, but at the time was still awaiting word from the Commissioner of Insurance on exactly how the guarantees would be realised.