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TURKS AND CAICOS ISLANDS NATIONAL INSURANCE BOARD
Notes to Financial Statements, continued Year ended March 31, 2013
15. Accounts payable and accrued expenses, continued
In order to try and resolve the above matter two actuaries were invited to opine on NIB’s obligations under the provisions of Section 43 of the Benefit Regulations and Section 49 of the Ordinance for the period from April 6, 1992 until March 31, 2010. The two actuaries determined that statistical and financial data was not available to support TCIG’s claim because adequate records had not been kept by TCIG. In the absence of specific documentation to support TCIG’s claim they estimated that NIB owed US$6.15 million for the period from April 6, 1992 to March 31, 2010 based on employment injury data from the Bahamas. The actuaries estimate was subsequently reviewed by an external independent actuary. After considering all the information, the NIB Board agreed to the figure and executed payment of US$6.15 million to TCIG on August 14, 2012.
As NIB only became aware of TCIG’s US$10 million claim during the year ended March 31, 2012 and subsequent to approval of NIB’s 2011 financial statements, the Directors determined that the expense, and associated provision, should be recognised during the year ended March 31, 2012. Accordingly, for the year ended March 31, 2012, US$5,313,266 (note 19) was recognised as an employment injury benefit expense in the statement of income, expenses and reserves, US$836,734 of the aforementioned US$6.15 million payment having already been recognised by NIB in 2010, although not paid until August 14, 2012 as part of the aforementioned US$6.15 million.
As at March 31, 2012 TCIG’s claim related solely to medical treatment costs. In November 2012 TCIG claimed US$3.15 million of interest on the unpaid medical treatment costs as part of a proposal submitted by TCIG to NIB seeking simultaneous settlement of several outstanding issues (note 24). Legal counsel for NIB advised that there was no legal basis for paying TCIG’s claim for interest although legal counsel for TCIG advised that there was a legal basis.
As no claim for interest charges thereon had been received as at March 31, 2012 no provision was recognised by NIB as at that date.
In November 2012 NIB paid TCIG interest charges of US$3.15 million to settle the claim as part of an Omnibus Agreement (note 24) which settled all outstanding issues between TCIG and NIB including the interest claim.
The directors of NIB have confirmed they are not expecting any further claims from TCIG for medical services provided for the period from April 6, 1992 to March 31, 2010.
An amount of US$612,000 of employment injury benefits was paid during the year ended March 31, 2011. NIB’s management do not consider any additional amounts need to be accrued for any employment injury benefits in either 2011, 2012 or 2013 (note 19).
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