Insurance Amendment Bill No.3 of 2018 passed unanimously

– “essentially a safeguard to prevent a debacle similar to that which occurred with CLICO, years ago.” – Min. Jordan

DPI Guyana, Friday, July 13, 2018

The Insurance Amendment Bill 2018 Bill No. 3/2018 was passed by the National Assembly unanimously after being read by Minister of Finance, Winston Jordan for a second and third time last evening. Initially published in 2016, the minister said it enhanced the regulatory framework and introduced an introductory framework to ensure supervision, in keeping with international best practices.

He explained that it is, “essentially a safeguard to prevent a debacle similar to that which occurred with CLICO, years ago.” The provisions offer safeguards to those who utilise life insurance policies and their beneficiaries, the minister further explained. The assured are now guaranteed that beneficiaries will be able to obtain the payments owed as dictated by the policy taken out. It was explained that issues surrounding beneficiaries resulted in policyholders now being able to alter or revoke designated benefits, except where un-revocable, in writing, were now resolved.

Describing it as “lost in translation”, the Finance Minister explained that there was a gap when the initial bill from 1998 was modified and re-laid in 2016 as the Insurance Act 2016, and in its current form, read on April 26, of this year.

It also enables beneficiaries to enforce payments due as a result of life policies made for their benefit. The bill was supported by the Opposition side unanimously, as a “timely intervention and an important amendment.”

By: Paul McAdam