Page 68 - NIB Annual Report 12-13 | 13-14

TURKS AND CAICOS ISLANDS NATIONAL INSURANCE BOARD
Notes to Financial Statements, continued Year ended March 31, 2013
15. Accounts payable and accrued expenses, continued
Prior to January 1, 2012 any employed person who suffers personal injury as a result of an employment accident was entitled, free of charge, to such medical treatment as NIB, in consultation with TCIG’s Chief Medical Officer, considered necessary in respect of the relevant injury per Section 43 of the Benefit Regulations. Also, Section 49 of the Ordinance states that there shall be paid from the National Insurance Fund (the Fund) into the general revenue of TCIG such sums as have been agreed with the Minister of TCIG responsible for health, the said payments representing the amount incurred by TCIG’s Department of Medical Services when satisfying Section 43 of the Benefit Regulations.
At March 31, 2010 the initial assessment of the relevant amount due to TCIG for the period from April 6, 1992 to March 31, 2010 was US$836,734, which was based on specific claims made by TCIG in relation to four employment injuries. In settling these claims NIB informed TCIG, in writing, that, in NIB’s view, this represented settlement of all such claims up to March 31, 2010. There was no indication from TCIG, at that time, that TCIG disagreed with NIB’s position. The US$836,734 was recognised by NIB as an expense during the year ended March 31, 2010 and was applied against TCIG’s indebtedness to NIB.
Subsequent to the approval of NIB’s March 31, 2011 financial statements, TCIG made a claim for US$10 million for medical services provided by TCIG in connection with employment injuries for the same period as the aforementioned US$836,734 already claimed, i.e. from April 6, 1992 to March 31, 2010, pursuant to the aforementioned provisions of Section 43 of the Benefit Regulations and Section 49 of the Ordinance. NIB challenged the validity of TCIG’s claim on various grounds including, but not restricted to, the fact that the US$10 million claimed could not be supported by actual patient data. On January 25, 2012 a temporary ordinance was passed to make provision for a transfer of funds from NIB to the National Health Insurance Board (NHIB), a body corporate established by TCIG in 2009. The temporary ordinance stated that, notwithstanding anything to the contrary contained in the Ordinance, NIB was to pay NHIB the expenses incurred by NHIB, or the Ministry responsible for health, in carrying out the provisions of the Ordinance.
The temporary ordinance lapsed on June 30, 2012 without any payment envisaged therein having being made by NIB to NHIB or TCIG.
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