By Emmanuel Joseph
A $5 000 life benefit plan held by some 14 000 members of the Barbados Association of Retired Persons (BARP) in a Group Life plan is now in limbo as the insurance companies underwriting the policy make a case for a higher premium.
The suspension of the policies of the retirees by Sagicor, Beacon and Trident insurance companies was confirmed on Wednesday by BARP President Marilyn Rice-Bowen as she sought to shed light on concerns expressed by a member who reached out to Barbados TODAY in relation to his 95-year-old mother’s policy, which includes the $5,000 ‘death’ benefit. The money is paid to the registered beneficiary at the death of the insured person.
Rice-Bowen said the insurers – Sagicor, Beacon and Trident – decided to suspend the policies and review them after BARP rejected their proposal to increase the premiums.
She said the association explained the situation to members to the best of its knowledge during a meeting attended by some 600 people.
“We briefed them to the best of our knowledge and the best of our knowledge is that it has been suspended. It has been suspended because the premiums were being increased and we have rejected the increase. If we had accepted the increase, the plan would have been reactivated, but in our members’ interests, BARP took the decision to ask the insurers to reopen the negotiations with reference to the premiums,” Rice-Bowen revealed in an interview with Barbados TODAY.
The BARP head said her members “don’t quite understand the depth of the work that has to be gone into when we are seeking a renewal of a plan”.
“We accept, without reservation, that the plan would be in force right now, but we are looking after our members’ interests, and from where we sit, from our perspective, the premium being suggested is not in the interests of our members,” Rice-Bowen asserted.
She is adamant that BARP will continue to negotiate with the insurers until it gets what it considers the best offer to members.
“The suspension of the plan did not come at BARP’s request, but because you are in negotiations, the insurers suspended the plan. The decision to suspend is never the insured’s decision nor the brokers’ decision. The insurers decided that in view of the fact that we were not accepting the rates as proposed, they would suspend the plan until we can arrive at a mutually identifiable premium,” she underscored.
A notice posted on the association’s website states: “Please be advised that effective September 1, 2022 the Life Benefit plan has been suspended until further notice. As such, we are unable to accept payments for new enrolments as well as renewals.
“Members whose payments were made before September 1, 2022 remain covered.”
The member who reached out to this media house expressed concern about whether the death benefit would be paid while the policy remains under review.
“On my turning up this year to pay my premium, I was told ‘we are sorry but we cannot take your premium, we could only renew your membership,’ which means in normal circumstances and you don’t pay your premium on your insurance policy it lapses right? So my query to that was, ‘ok you are not taking the premium for my mother which is a death benefit, what is the problem?” he asked.
The man said the reply was ‘we have everything on hold right now. It’s under review. I asked ‘does that mean then that in the event this person passes that that is also under review?’ I could get no definitive answer. Everything was very vague. Nobody wants to answer my question,” he claimed.
“My mother is 95 years old in the next couple of days which means she is bordering on a very thin line in terms of health. She can go at any time. My effort at trying to find out what they were doing, is in the event that something happens that we don’t want to happen, what do I do?
“I went to Lynch Insurance Company. They can’t give me any answer,” the BARP member reported. The distraught man argued that the insurers are supposed to take a premium on the policy. “You can’t park a policy,” he suggested.
The BARP member surmised that the reason for suspending the life policy was because of the number of death claims that were paid out at the passing of elderly persons who died from COVID during the past year or two.
“Don’t put the old people’s lives on hold,” he urged.
In an official statement issued to Barbados TODAY Sagicor said: “The Barbados Association of Retired Persons’ (BARP) Group Life and Health Plan is jointly underwritten by Sagicor Life Inc., Beacon Insurance Company Limited and Trident Insurance Barbados.
Given the sensitive and confidential nature of all plans underwritten by Sagicor, as well as our commitment to our valued clients and partners to maintain privacy regarding all matters related to the group, or any individual member of the plan, we are not in a position to comment any further.”
When contacted, Chief Executive Officer (CEO) of Trident Insurance David Alleyne responded in a similar vein.
“I don’t think it is in my place to be making comments about that. There are three insurers, Sagicor is the lead and we are in constant discussion with BARP on it. It would be premature and very improper of me to be making a comment about something that is being discussed.
“Terms and conditions are still being negotiated with BARP and the executive, and when we have reached some kind of agreement, then the plan would be put back in place if BARP wishes that to be,” Alleyne told Barbados TODAY.
Top officials of Beacon Insurance could not be reached, but Chief Executive Officer (CEO) of Lynch Insurance Brokers Gregory Rose promised to look into the matter. (EJ)
