Prime Minister Dr. Hubert Minnis’ claim that the Progressive Liberal Party (PLP) government allowed the Caribbean Catastrophe Risk Insurance Facility (CCRIF) payments to lapse, causing a loss of $33 million in damages for Hurricane Matthew, is false, according to Opposition Leader Philip Davis.
During a press conference at the House of Assembly yesterday, Davis explained why The Bahamas decided to withdraw from the CCRIF.
“The facts are that The Bahamas, after careful consideration (and) on the advice of technical officers in the Ministry of Finance, Met Department and the Port Department took the decision to withdraw from CCRIF following the rejection of a claim under the insurance for Hurricane Joaquin in 2015,” Davis explained.
“The claim was rejected on the basis that the wind velocity did not meet the mandated speed to accept a claim and that the damage was therefore due to flooding and not to wind.
“Up to that time, The Bahamas had been paying premiums in the tens of millions and were unable to collect anything. Acting on advice, government agreed that self-insurance would be more cost effective. At the time of the decision, we were also in the middle of negotiations with CCRIF to adjust the terms of that insurance.”
During his contribution to the 2017/2018 Budget Communication debate earlier this week, Dr. Minnis said the PLP government “cost the country” more than $32 million in potential insurance payouts from Hurricane Matthew because of gross incompetence.
The payout would have been the biggest ever given out by the Caribbean Catastrophe Risk Insurance Facility (CCRIF) and according to Dr. Minnis, the former government did not pay the annual $900,000 which caused the country to failed to qualify for payouts.
Davis explained that former Prime Minister Perry Christie also brought this matter home to representatives of the World Bank when he met with them in Paris in December 2015 during negotiations for the World Climate Accords.
“In fact, he referenced the recent experience of The Bahamas with Hurricane Joaquin noting that existing insurance structures are inadequate and often legalism was relied on to deny legitimate claims which spoke directly to the situation with CCRIF,” Davis said.
“Following Matthew, I am advised, CCRIF wrote the government suggesting that we may have qualified for loss compensation. This suggestion was referred to the team that had advised earlier and it was that team’s considered view that we would not have qualified. The persons who advised us are still in the (public) service. Minnis only need to seek their input or review the files on this matter.”
Yesterday, Progressive Liberal Party Chairman Bradley Roberts also agreed that Dr. Minnis’ claim is false and said it is a “bold-faced lie.”
Roberts, who addressed the PLP’s National General Council Meeting yesterday, defended the former government and said Dr. Minnis’ claim is “designed to intentionally lie to the Bahamian people.”
