‘They are getting away with this — that’s what really hurts me’: British American under fire for final payouts
Junior Glasgow’s final payout from the failed British American Insurance Company is a cheque for $4.58, another for $9.71 and a third for $21.21. A grand total of $35.50 for insurance policies his mother paid thousands of dollars into over the course of her life.
“They are getting away with this — that’s what really hurts me,” Mr Glasgow said.
Mr Glasgow said his mother had worked hard as a housekeeper, and what little she had left over each week she paid into life insurance and other policies, which she wished to benefit her children one day.
Mr Glasgow said his mother’s life insurance policy was worth around $20,000.
But he and his brothers received final distributions or payouts on Friday of around $30 each which followed their first payouts of around $300 each.
“This is what we waited two years for!,” said Mr Glasgow, who is unable to work due to debilitating injuries in a truck accident.
Like many other Bermudians, his mother’s hard earned money was paid into British American’s various insurance policies over decades.
It was one of the cheapest insurance policies around when his mother was a young woman, Mr Glasgow said.
Who could have known the company that operated from a landmark building on Front Street would go bust in 2009.
At the time there were 5,500 Bermuda resident policy holders.
The final distribution was primarily made up of British American’s share of the proceeds from the sale of the building it operated from.
But given the downturn in the property market, the final sale price of that building was half what had been originally expected.
The Official Receiver said it finally sold for some $1.628 million.
And since British American owned only a 40 percent interest in the building, it only received proceeds totalling $654,000.
The rest or remaining 60 percent interest in the building was owned by the Bermuda Employees of British American Pension Trust.
“Together with the first interim distribution, paid in December 2011, Scheme Creditors will now have received a total distribution of 37.5 percent of their Scheme Claims,” A letter from the Official Receiver to Mr Glasgow said.
“This distribution represents full and final settlement of all claims you have against the company.”
The letter did note that to avoid cheque cashing fees the final amounts can be paid by online transfer.
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