BASSETERRE, St Kitts -- The governments of the Eastern Caribbean Currency Union (ECCU) have announced the commencement of phase i of the policyholders relief programme for owners of flexible premium annuity (FPA) policies issued by British American Insurance Company Limited (in judicial management) (BAICO).
This phase of the programme does not include either executive flexible premium annuity (“EFPA”) policies or flexible premium annuity II (“FPAII”) policies, which are expected to be covered in subsequent phases of the programme.
Under this phase, owners of FPA policies issued in the ECCU will receive a payment equivalent to the amount of their policy balance as at August 1, 2009, plus the amount of any premiums that they have paid since that date. If a former FPA policy owner never received payment for an FPA policy that matured or was surrendered before August 1, 2009, they will receive the amount of that surrender/maturity payment.
As a condition of payment, owners must sign an application and release form in which they give up all of their rights against BAICO and other specified persons in respect of the FPA policy, and their policy will be cancelled as at August 1, 2009.
Once phase I of the programme is nearer to completion, BAICO policyholders who have EFPA and FPAII policies will be invited to apply for assistance.
Owners of these policies are intended to be assisted in phase 2 of the programme, currently planned for launch during the first quarter of 2013. The exact timing will depend on when funds are received by the ECCU governments and operational arrangements can be implemented.
During phase 2, it is expected that EFPA and FPAII policy owners will receive a payment of up to EC$30,000 based on the amount of their principal balance. Policy owners with a principal balance over EC$30,000 are expected to receive an additional payment during Phase 3, the amount of which will be determined based on final amounts received by the ECCU governments for this purpose.