Central bank suspends insurer

PORT OF SPAIN: Central Bank officials Tuesday suspended the operations of Motor and General Insurance Company after the Port of Spain-based firm was struggling to maintain the required quantity of money in its statutory fund. Inspector of Financial Institutions at the Central Bank Carl Hiralal took regulatory action and ordered the doors of Motor and General closed for an initial period of 60 days. “This was necessary to protect policyholders,” he said during a press conference Tuesday at the Central Bank Tower, Port of Spain. Motor and General provides insurance coverage to clients out of 11 offices in Trinidad, one in Tobago and one in the Cayman Islands. All new business has been suspended at the company but existing insurance policies remain in force, Hiralal said. But no claims can be paid while the company’s operations are suspended. It was not immediately known how many policyholders are affected by the temporary closure of the company. Hiralal said the temporary suspension did not mean the company was in receivership but provided an opportunity to assess its financial status. Brian Hackett of accounting and auditing firm Pricewaterhouse-Coopers has been engaged by the Central Bank to assist in this process. Hiralal told reporters that the company had problems over several years in filing financial statements to the Central Bank. It also had challenges maintaining the required quantity of money in its statutory fund and its accounting records made it difficult for the company to keep track of its claims, he added. (Trinidad Express)