A decision made by the Jamaican Supreme Court last Thursday will prevent Dyoll Insurance Company policyholders in the Cayman Islands from receiving any payments on their outstanding insurance claims in the near future.
The Court ruled that monies held on behalf of Dyoll as a proscribed statutory deposit by the Jamaican Financial Services Commission could only be paid out to satisfy insurance claims made in Jamaica.
‘In essence, the judge ruled in favour of the FSC,’ said attorney Stuart Diamond, who represents many Dyoll policyholders in Cayman.
The Court’s ruling was made more important recently when the FSC said the statutory deposit it held was J$375 million (US$6.1 million) and not the J$45.3 (US$740,000) it had originally indicated.
Ken Krys, one of Dyoll’s joint official liquidators, said the Court’s ruling would basically have been a non-issue if it were about the $740,000.
Since the US$6.1 million represents nearly all of Dyoll’s available assets, there can now be no interim pay-out to Cayman’s Dyoll policyholders.
Mr. Krys said no official press release will be issued about last week’s decision until the written ruling is delivered.
Although the Court ruled on the status of the proscribed deposit held by the FSC, the amount of that deposit is still disputed.
Leave is being sought to apply for a judicial review of the FSC’s claiming the US$6.1 million as proscribed deposit.
Dyoll policyholders in Jamaica have about US$15 million of claims, while those in Cayman have about US$25 in claims, Mr. Krys said.
If the Court rules in favour of the FSC in the judicial review matter, Cayman policyholders will receive ‘very little’ of their claims, Mr. Diamond said.
Besides the amount held by the FSC, the Cayman Islands Monetary Authority is holding US$2 million as a statutory deposit.
That deposit is subject to a ruling by Cayman’s Grand Court as to whom it should be payable, Cayman policyholders only, or to all Dyoll policyholders.
Mr. Krys said he is in no hurry to push for an answer to that question until the dispute over the quantum of the proscribed deposit held by the FSC is resolved.
‘Until we find out what Jamaica will do, Cayman shouldn’t be making any decisions,’ he said.
Regardless of the outcome of the judicial review, the Supreme Court’s decision will prevent Cayman policyholders from ‘catching up’ with Jamaican policyholders when additional Dyoll assets are gained through the payments of reinsurance companies, Mr. Krys said.
Additional assets gained by Dyoll, except for possibly the US$2 million held by the Cayman Islands Monetary Authority, will be distributed evenly among all policyholders even if Jamaican policyholders have already received 40 cents on the dollar and Cayman policyholders only eight cents on the dollar, Mr. Krys said
The liquidators began distributing interim payments to all of Dyoll’s creditors amounting to 17 cents on the dollar on 31 October, but where stopped from proceeding the next day by the Jamaican court, pending the outcome of last week’s action. Stop payments were put on all of the checks that were sent out before the Court’s injunction.