The 14 754 subscribers of the 24 602 Super Cash Back Gold insurance policies of the BAI might obtain their money back. However, there is a price to pay: conservators André Bonieux and Mushtaq Oosman have suggested that a penalty (exit value penalty) is paid to be able to retrieve their capital. Now, the authorities will have to approve of this solution. Or not.
The revoking of the license of the Bramer Bank has led to a number of bitter consequences, specially for the clients of the BAI group. The Minister of Good Governance, Roshi Bhadain, had explained that the Super Cash Back Gold policy was crucial to the Ponzi Scheme elaborated by the BAI; the money generated by the insurance policy is said to have been used to keep the subsidiary groups of the BAI on the market. As a result, the 14 754 clients of the 24 602 insurance policies of the Super Cash Back Gold have found themselves in a state of limbo.
Conservators André Bonieux and Mushtaq Oosman might have a solution for them though. They have recently submitted an interim report to the Financial Services Commission (FSC). The report was presented to the members of the FSC in the presence of South-African actuaries of PricewaterhouseCoopers. They have suggested that the clients “be given option to exit their policies” by way of an exit fee “that is determined to be both equitable across all Single Premium policies”.
The authorities will now have to review the solution and give their approval.