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TURKS AND CAICOS ISLANDS NATIONAL INSURANCE BOARD
Notes to Financial Statements, continued Year ended March 31, 2013
24. Related party balances and transactions, continued
The Omnibus Agreement therefore settled, amongst other matters, the dispute between TCIG and NIB as to whether or not there was an obligation by NIB to pay TCIG’s interest claim. No support was provided by TCIG for interest of US$3.15 million on medical treatment costs as specified in the Omnibus Agreement.
Key management personnel compensation
Salary of the director and deputy directors US$ Housing and gratuity benefits of the director US$ Other benefits of the director and deputy directors US$ Allowances of the board of directors US$
25. Financial instruments
2013
293,920 23,000 10,707 76,400
2012
279,349 33,344 16,243 78,000
NIB has exposure to the following risks from its use of financial instruments: (a) Credit risk
(b) Liquidityrisk
(c) Market risk
This note presents information about NIB’s exposure to each of the above risks, NIB’s objectives, policies and processes for measuring and managing risk, and NIB’s management of capital. Further quantitative disclosures are included throughout these financial statements.
Risk management framework
The Minister with responsibility for National Insurance (the Minister), or the Governor of TCI acting in that capacity, appoints the Directors. The Directors have full discretionary power to direct, manage, allocate and rebalance or liquidate NIB’s investments in compliance with the terms of the IPS. The Directors established the IPS which communicates the investment philosophy of the Directors regarding NIB’s investments. The IPS creates a general framework within which the investment assets of NIB can be managed. The IPS envisages a rebalancing exercise at least semi-annually to keep asset allocations within recommended ranges. At March 31, 2013 and 2012 NIB kept its asset allocation, except for cash and money market instruments, within ranges recommended by the IPS (note 25 (c)(ii)).
74 | The National Insurance Board of The Turks and Caicos Islands
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