C.B.S. appeals to insurance policyholders

By Adel Fruean 15 October 2021, 10:25PM

The Central Bank of Samoa is seeking the assistance of all policyholders of the now liquidated firm Progressive Insurance to provide information that can be used to offer assistance.

The CBS issued a statement on Friday saying they may only offer assistance provided they have the pertinent details and reserve the right to accept or reject any matter submitted.

All former policyholders have been asked to provide the following information to the C.B.S. for a 12-month period from 18 September 2020 to 17 September 2021.

The information needed should include type of policy; period of coverage; premiums paid; liabilities or outstanding claims; and receipts.

The C.B.S. also noted that the information must be submitted no later than 22 October 2021.

“In addition, the purpose of this is to ensure that the Central Bank offers a form of assistance in addressing this matter, especially from the period in which the policy lapsed during the voluntary liquidation date of 17 September 2021,” reads the statement.

“But please note that this is not a form of guarantee of any sort. 

“However, we may only offer assistance provided we have your details. We reserve the right to accept or reject any matter submitted.”

In a previous statement by the financial institutions regulator, the C.B.S. clarified its role with regards to the voluntary liquidation filed by the Progressive Insurance.

Liquidation is the process, formerly known as winding up, by which the business activities of a company are brought to an end.

“This happens when a company can no longer pay its debts, liabilities or operate its business.

“Voluntary liquidation is when the actual company files for liquidation as opposed to a court order or other factors. 

“In this situation, Progressive Insurance made a special resolution on 9 September 2021 in order to do two things: Progressive Insurance to be placed into voluntary liquidation; and appoint a N.Z. Resident Liquidator, a Mr. David Ross.”

Furthermore, the C.B.S. also stressed that they did not lodge or press for a voluntary liquidation as that was the prerogative of the firm Progressive Insurance. 

“Secondly, Progressive Insurance in its liquidation notice stated that they are unlikely to meet creditors’ claims, given its financial position. It was then prudent for Progressive Insurance to go into a voluntary liquidation.

“Once the Central Bank received this liquidation notice, it was then the statutory duty of the Central Bank to ‘cancel’ the license. The Central Bank then issued a public notice to this effect on 29 September 2021.

“When the cancellation notice was issued by the Central Bank on 29 September 2021, it was at this point in time that the legal mandate of the Central Bank to legally supervise Progressive Insurance ceased to exist.”

By Adel Fruean 15 October 2021, 10:25PM
Samoa Observer

Upgrade to Premium

Subscribe to
Samoa Observer Online

Enjoy access to over a thousand articles per month, on any device.

Ready to signup?