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Reducing CLICO staff seeks to conserve needed cash, says Guyana Commissioner of Insurance
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GEORGETOWN, Guyana (GINA): In an invited comment Thursday in response to media reports that CLICO Guyana workers have been sent home and the Lamaha Street offices of the company has been closed, Commissioner of Insurance and Judicial Manager of CLICO Guyana, Maria van Beek, stressed that the company is not being liquidated.

Van Beek noted that, in accordance with the Insurance Act 1998, her job is to manage the operations of the company effectively and efficiently. To this end, employees, primarily in the marketing department of the company, were released as they remained idle, given that the company is not permitted to issue new policies or renew existing ones.

“This reduces the amount of money available to effectively conduct the operations of the company. Since as judicial manager, I am mandated to manage the affairs of the company with the greatest economy compatible with efficiency, it has become necessary to release all sales, part-time and contract employees,” van Beek explained.

She said that not much money was being received hence the need to conserve much needed cash.

“Some administrative staff have also had their services terminated along with a number of other cost-saving measures, which include the closure of the company’s sales offices in Georgetown and some of the outlying areas. In total, it is expected that some 43 staff will be affected by this cost saving measure,” Commissioner van Beek stated.

She explained that the staff who were released would receive their severance packages shortly. “This latest cost saving measure is in keeping with Section 71 of the Insurance Act 1998 which requires that I carry out my function with the greatest possible economy. The company is not in liquidation as this has not been ordered by the courts.”

The local company had invested $6.9 billion or US$33.7 million in its sister company in the Bahamas, which was the subject of a liquidation order on February 24, in contravention of the regulations of the Insurance Act. Despite repeated demands by the Commissioner of Insurance since 2007 to reduce their investment overseas to fall in line with the regulations, the local company has failed to do so jeopardizing the investments of many Guyanese.

However, President Bharrat Jagdeo has issued a guarantee that all policyholders will be protected and will not lose their investments. On March 12, the National Assembly unanimously supported the President’s guarantee.

In the interim, while the status of the company is being established, claims for event-related policies such as fire, health and motor will be met.

March 20, 2009

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March 20, 2009 | 11:16 PM Comments  0 comments

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