COMMONLY ASKED QUESTIONS
Will policyholders who receive EC$30,000 under this phase receive more later?
The amount that can be paid in future phases of the Relief Programme will depend on the amount and availability of future funding. It is not likely that additional payments would be made in 2014.
What is the Principal Balance? (EFPA and FPAII policies)
The Principal Balance is the total amount of contributions made to the Policy, less the amount of any withdrawals or partial payments.
What is the Accumulated Value of my policy? (FPA Policies)
The Accumulated Value is the amount calculated under the FPA Policy terms, which is generally the amount of contributions plus interest, less any withdrawals and fees.
What are the distributions from the BAICO Estate?
In future, it is expected that BAICO will make one or more payments, or distributions, to those creditors such as Policy Owners who are owed money by BAICO. The amount of those distributions will depend on the assets of BAICO, and their realization, as compared to the amount of BAICO’s remaining liabilities.
This is relevant to Phase 3, as persons who receive payment under Phase 3 of the Relief Programme will have that amount deducted from any future distribution that might have been payable to them from BAICO’s Estate.
Why are persons under Phase 3 being asked to give up some of their future distributions from the BAICO Estate?
In Phases 1 and 2 of the Policyholders Relief Programme, and also the ECCU/BAICO Health Insurance Support Fund, applicants had to waive the total amounts owed to them for their policies as a condition of receiving payment from the ECCU Governments. This ensured that those policyholders did not receive “double payments”, and it also meant that policyholders who had not yet received any payments benefitted, as the total liabilities of the BAICO Estate were being reduced.
Since it is possible that an additional payment could be paid to those who receive funds under Phase 3, those persons are only being asked to give up the same amount as the value of their payment. So, if you receive EC$30,000 under the Relief Programme, you are being asked to give up EC$30,000 from the amount that BAICO would have paid you in future distributions.