Former Marpin Reciever, Michael Toney, has been appointed by the High Court to become the Judicial Manager of First Domestic Insurance Company (FDIC). The new appointee will manage the affairs of the beleaguered company and work out an effective plan for liquidating all the debts of the organization in record time.
The FDIC has been challenged with paying the financial obligations of the company since the passage of Hurricane Maria in 2017. Company CEO, Curtis Tonge, said the DLP administration helped out by offering a loan of EC$5 million towards to settling of debts or insurance claims to policyholders, but the loan amount is significantly small since the company is owing over EC$20 million.
Tonge made it clear that the Dominican government assisted with EC$5 million for a 10-year-tenure at 3% interest, while the assets of the company served as collateral security. He noted that the interest rate could have been up to 10% if the FDIC had approached a conventional bank for the loan.
However, most affected policyholder with the insurance company lament that the FDIC and the national government have not done enough since the three years when the company’s customers suffered a direct hit from natural distaster. They said three years is too long for the government or the company to pay out insurance claims to bonafide policyholders.
Tonge said the company continues to negotiate with the government, and with Toney’s appointment as Judicial Manager, the FDIC will soon be able to settle all its financial obligations.
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