SUPERVISOR OF INSURANCE Carlos Belgrave has appealed to the High Court to place British American Insurance Company under judicial management.
In a writ heard just over a week ago, the insurance company has among other things, is said to be unable to pay its debt.
Sources also told the SUNDAY SUN yesterday that in turn, the company was also unable to receive monies due from its parent company, Clico Holdings Barbados Limited.
Proceedings in the matter are expected to resume in another few days.
When contacted yesterday, Keith King, general manager of British American Insurance Company deferred comment on the matter to later in the day, but efforts to reach him up to late last night proved futile.
The latest development followed an earlier announcement this year by Prime Minister David Thompson who announced that British American Insurance Company was among two insurance companies to be placed under judicial management. The other company was Clico International Life.
In addition to being prohibited from writing new business by the Supervisor of Insurance, Thompson had said the Solicitor General was then in the process of preparing the necessary paperwork for an application for judicial management of the company in order to protect the interest of the policyholders.
The Prime Minister also noted that British American Insurance Company, a Bahamian company with branch operations in the Organisation of Easter Caribbean States were all under judicial management and its judicial managers were trying to achieve a sale of the operations along with the Barbados entity.
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Judicial management:
An application for judicial management is normally made by the Supervisor of Insurance. The grounds of the application would be that the company is insolvent, or feared to be insolvent and that its continuing operation in business is likely to be the prejudice of its policyholders.
It’s main objective is to stop the company from continuing to haemorrhage and to salvage its assets for the benefit of the policyholders. (TS)
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