Winston Dookeran's Clico decision illegal

In the Colonial Life Insurance Company (Trinidad) Limited (Clico)-Dookeran issue and policy holders, the counsel of Ramesh Lawrence Maharaj and his RLM & Company has been sought.

Minister of Finance of Trinidad and Tobago, Winston Dookeran in his 2010-2011 budget speech on September 8, 2010 stated that Clico's policy holders whose principal balances exceed $75,000 will be paid through a Government IOU amortised over 20 years at zero interest.

Acting on behalf of the Clico Policyholders Protection Association whose members are policyholders of the Clico, Senior Counsel Ramesh Lawrence Maharaj said in letter to the Central Bank Governor Ewart Williams, that the 'decision' of the government announced by the Ministry of Finance was made without consultation of the policyholders. The result of the implementation of such a policy would result in the deprivation of large sums of monies to the policyholders.

Mr. Ramesh Maharaj stated that the Clico policy outlined by Finance Minister Winston Dookeran in the 2011 budget is unconstitutional and contravenes the Central Bank Act.

The Central Bank Governor has been asked to address the matter. By section 44D of the Central Bank Act, the Central Bank may exercise the special emergency powers conferred on it by section 44D of the Act where the Bank is of the opinion that the interests of depositors, creditors, policyholders or members of an institution (which includes an insurance company registered under the Insurance Act) are threatened, the letter said.