ST GEORGE’S, Grenada, Monday February 28, 2011 – Caribbean Community (CARICOM) Heads of Government have agreed to the immediate establishment of a US$2 million Health Insurance Support Fund for British American Insurance Company/Colonial Life Insurance Company (BAICO/CLICO) policyholders.
The decision came during the leaders’ 22nd Inter-sessional meeting where they received a report from a Regional Technical Committee (RTC) on the resolution of the BAICO/CLICO financial difficulties in the Eastern Caribbean Currency Union (ECCU).
Money for the Fund will be sourced from the Petroleum Fund established by Trinidad and Tobago.
“Heads of Government also agreed that funds from the Petroleum Fund would be directed towards the recapitalisation of BAICO to address traditional life insurance policy holders,” said the communiqué issued after the meeting.
The leaders further agreed that the RTC would continue their work on a proposal for an investment trust fund. The Committee is expected to engage with the international financial institutions to assist in arriving at appropriate recommendations.
In a statement issued last week, governments of the ECCU said there had been several complications since the Health Insurance Support Fund was announced in July 2010, mainly from critical third party stakeholders failing to provide the ECCU governments with timely and accurate information about matters impacting the Fund.
However, it said most of those issues had been resolved and significant progress had been made towards launching the Fund.
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