25,000 other Clico investors now feeling shortchanged

One day after a High Court judge ordered Government to fulfill its promise to pay Executive Flexible Premium Annuity (EFPA) Clico policyholders in excess of $300 million, a second group of Clico policyholders have reacted by calling for an urgent meeting to discuss their members’ concerns.

Chairman of the Clico Policyholders Group (CPG), Peter Permell, said it would "be political suicide for the Government to pay only 250 policyholders 100 per cent of their money, plus three per cent interest, and effectively short change the other 25,000 policyholders," who are represented by his group. On Tuesday, Madam Justice Joan Charles ruled in favour of the claimants as she ordered the Government to make good on a promise to pay them.

Charles ruled the claimants were to receive 100 per cent of Clico’s contractually-owed liability to them, as well as three per cent interest from September 2010 to March 12, 2013. However, she has granted a stay of execution so the State’s attorneys can consider the ruling. It is yet to be determined if an appeal will be filed. Although conservative figures on Tuesday placed the payout at around $300 million, officials of Ramesh Lawrence Maharaj’s office, who is representing policyholders, yesterday estimated that it was closer to $500 million.

They stressed the revised figure did not include the interest, which was yet to be calculated. Rejoicing over the ruling, Permell agreed that "EFPA policyholders were legally entitled to be paid in full, the terms and conditions of their policy contracts so that the judgment comes as no real surprise to us." Permell said the matter was now being reviewed by the CPG’s attorneys, after it was announced the judgment was "limited to those policyholders who were part of this particular action."

Permell said a significant point to note was that Charles and by extension the Supreme Court, had agreed that the Government acted unlawfully in frustrating/terminating the legitimate expectation made by the last government to Clico policyholders.