ECCU governments will endeavour to alleviate woes of persons affected by collapse of British American Insurance Company
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Contact: Shannon Lebourne
Tuesday, March 30, 2010 – Prime Minister and Minister for Finance Honourable Stephenson King, has told the Parliament of Saint Lucia that his government along with other governments of the Eastern Caribbean Currency Union (ECCU) are taking all necessary steps to protect the interests of the region's citizens who are affected by the collapse of the British American Insurance Company (BAICO).
The Prime Minister provided the update on the sub region's approach to the BAICO situation at the commencement of the parliamentary sitting, Tuesday morning.
Mr King says governments of the ECCU have also agreed to assist in structuring a proposed new company to take over some of the assets of the British American Insurance Company in the Eastern Caribbean.
“The new company is to be capitalised by contributions from the ECCU governments, the liquidity support fund to which the government of Trinidad and Tobago have contributed US$50 million from the petroleum fund, additional contributions from certain CARICOM countries other than the ECCU member states, the residual assets of BAICO and by capital injections from at least one significant investor.”
The British American Insurance Company is currently under judicial management.
Prime Minister Mr King also reported to parliament, efforts to establish a Medical Claim Support Fund for citizens of the sub region affected by the collapse of BAICO.
“Madame Speaker the governments of the Eastern Caribbean Currency Union, are now finalising the establishment of a Medical Claims Support Fund to offer relief to people awaiting funds from British American to settle their medical insurance claims, this fund is being established to assist within certain parameters those ECCU policy holders who would otherwise be entitled to receive payments of claims under BAICO`s medical policies. It is being set up as an independent governmental fund rather than a part of the existing BAICO operations.”
The British American Insurance Company (BAICO) collapsed after being unable to satisfy policyholders and investors with the monies they placed into the trust of the company for safe keeping and growth.
Prime Minister King has given the assurance that governments of the Eastern Caribbean Currency Union remain committed to ensuring the best interests of citizens who invested in the company. |
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