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The insurance arbitration board
By Maria van Beek, Commissioner of Insurance
THIS article is written with the intention of informing readers of the existence and function of the Insurance Arbitration Board or the IAB.
Unfortunately, this entity is not well known. Unfortunate because it serves an extremely useful purpose it is an affordable and efficient method of resolving disputes between policyholders and insurance companies or brokers.
While the concept of arbitration is not new, particularly for our well established and litigation-conscious insurance sector, the IAB goes one step further. It is a statutory body and therefore not dependent on the whims of any particular entity.
Quite simply, it exists solely for the purposes of resolving disputes.
Secondly, all disputes are required to be presented to the IAB regardless of the nature of the dispute.
So, unlike normal arbitration where both parties opt for arbitration or the relevant insurance clause in the insurance contract is invoked, usually for the purposes of determining the amount of payment, this covers all disputes and is not optional.
This has proven to be disconcerting for some and a relief for others.
One concern is the IAB usurps the authority of the courts.
In answer, it should be noted that all decisions of the IAB may be appealed to the High Court which is and always will be a higher authority to the IAB. The IAB does, however, provide much needed support to our over-run and under-resourced system of justice.
Just one point will perhaps provide support to this statement.
The IAB has heard 12 cases in 2004 and 2005 and of those that have been resolved (eight by 31st December 2005); the average time taken to provide a decision is six months.
If this is not enough, then perhaps another statistic may prove interesting -- no decision to date has been appealed via the High Court. These eight disputes have been dealt with in an effective and orderly manner without additional burden to the courts and have certainly cost participants less than most court matters would.
Another perhaps more valid concern is that of enforcement.
Decisions made by the IAB are legally binding. If not adhered to by one party, the other party or parties must then fall back to the courts for redress.
Hopefully, those parties that do not adhere to the decision of the IAB and have not lodged an appeal with the courts will be dealt with appropriately by the relevant judicial body.
I recognize it is early days and the IAB’s performance has not yet faced the test of time but this aspect of the legislation is a step in the right direction and is surely deserving of commitment and consideration by all stakeholders.
All the implications have to be addressed also, not least is the likely amendment to most insurance contracts.
For those interested in the formalities, the IAB was formed in 2004 following the commencement of the Insurance Act 1998 on 18th December 2002. Its composition of three members is prescribed in the legislation to include a representative of the Commissioner of Insurance, the insurance brokers and the insurance companies respectively.
The current Board comprises Mrs. Maria van Beek (Commissioner of Insurance), Mr. Hans Barrow (Managing Director, Insurance Brokers Guyana) and Mr. Howard Cox (Manager, Hand-in-Hand Mutual Fire Insurance Company and acting President of the Insurance Association of Guyana).
STANDARDS CORNER
CSME competition needs national quality infrastructure
THE implementation of the CARICOM Single Market and Economy (CSME) will have a significant impact on the way trade is conducted in the region.
There is no doubt that competition would be the name of the game, and the live wire of such competition is the concept of standards and quality, whether it has to do with products or services.
In a competitive marketplace, customer satisfaction determines the market share for each supplier, and ultimately, it determines which suppliers of products or services survive. Any marketplace with multiple suppliers favours the customer, and customers demand quality products and services that meet accepted standards.
For an organisation to have a competitive advantage over other organisations that offer similar products or services and compete for the same set of prospective customers, it must be able to replicate the products or services it offers to prescribed standards or measurement yardsticks.
Guyanese manufacturers and service providers would be able to compete efficiently, confidently and competently in the CSME. However, there is the desperate need for the establishment of a National Quality Infrastructure in Guyana, and manufacturers must be an integral component of that infrastructure.
The Guyana National Bureau of Standards (GNBS) is involved in a range of activities to set up such a National Quality Infrastructure to solidly support manufacturers in the competition which promises to be fierce.
The GNBS is actively providing continuous technical assistance to three separate clusters of public sector agencies, i.e., a range of inspection bodies, testing laboratories and certification authorities, so that they can become accredited to the respective international standards system.
This vital move would create a strongly positive enabling environment by the public sector for the private sector in order to facilitate easy market access.
Work is massively under way by Guyana to assist manufacturers to institute Quality Management Systems into their operations so that they can become certified to the enviable ISO 9001 International Standard System.
Four Guyanese companies have already been certified by external Registrars to this coveted International Standard, i.e., the Demerara Distillers Limited (DDL), Demerara Oxygen Company limited (DOCOL), Edward B. Beharry & Company Limited, and more recently, GUYSUCO.
There are 10 other companies in the pipeline under processing.
The standard development process of Guyana has already been harmonised with the regional one so that the regional standards produced are adopted as national standards, and this would certainly facilitate trade and trading in CARICOM, and by the region in the wider international market.
Sterling efforts are made by Guyana to effectively equip its series of testing and calibration laboratories so that it can provide to the various industries accuracy traceability of the measurement instruments and devices used in the said industries, and laboratories.
Successful trade by a country is hinged on its national measurement system, and Guyana would have this competitive advantage.
Guyana also operates a Standards Mark Scheme for its various industries so that any product which consistently complies with the national standard and operates with a Quality Management System can be permitted to use the National Mark which would facilitate easy market access in the regional and international market.
Overall, what is needed is for Guyanese manufacturers to overcome their reluctance and resistance, and implement a Quality Management System which complies with the ISO 9001 International Standard.
For the smaller enterprises which cannot reach this level, efforts should be made to work towards the National Management System Standard.
Manufacturers have little or no choice in the context of stemming the challenging competition in the CSME.
It is very important to act now.
EU, IDB give grants to boost rice competitiveness
ACTING Agriculture Minister, Mr Harripersaud Nokta has announced that the Government has received a grant of 2.7 million euros (G$5 billion) from the European Union to help bolster the competitiveness of the local rice industry.
He told scores of rice farmers at Anna Regina on Essequibo Coast that the funding was made available after generous consideration, on the basis of good management of the country.
Nokta said part of the sum will be used to establish two large Water Users Associations (WUAs) which would take over and manage the entire drainage and irrigation (D&I) network in rice growing areas on Essequibo Coast.
He explained that the formation of WUAs is in the interest of agricultural production and the EU has given the money because the donor group wants farmers here to charter their own destiny.
Nokta on Saturday said the WUA in the north of the coast will be responsible for managing the system from Charity to Zorg-en-Vlugt and the one in the south from Annandale to Good Hope.
Members and the chairmen of both have already been identified and their entities, from next year, would be responsible for setting and collecting usage tariffs, he stated.
Assistant Project Manager of the Poor Rural Communities Support Services Programme (PRCSSP) in Region Two (Pomeroon/Supenaam), Mr Abdool Annief said legislation for the WUAs to operate as independent business like bodies was previously passed.
According to him, G$2.4M is also available from an Inter-American Development Bank (IDB) grant as start-up, to construct two offices for the WUAs and equip them with computers.
Region Two Chairman, Mr Alli Baksh, who spoke at the forum, too, said the Government is establishing the WUAs to lower operational costs and the idea behind the scheme is to wring economic changes and development in the rice industry.
Project Coordinator of the EU Rice Assistance Project in Guyana, Mr Nigel Dharamlall said rice planters, who will be directly involved in managing the WUAs, should be strong, have vision and foresight for developing the sector.
He emphasised that the industry has to be more competitive as the EU grant is to regenerate it, in terms of efficiency and profitability.
Another speaker, Rice Producers Association (RPA) General Secretary, Mr Dharamkumar Seeraj challenged the farmers to be committed, honest, dedicated and operate in a transparent manner so that the WUAs can be a success story.
A total of 32,500 acres are under rice cultivation in Region Two. (RAJENDRA PRABHULALL)
ERC to investigate discrimination charge at GWI
THE Guyana Trades Union Congress (GTUC) has written the Ethnic Relations Commission (ERC) about alleged discrimination at Guyana Water Incorporated (GWI) against one of its employees.
According to a release from the GTUC, employee Ms. Marcel Goppie was allegedly discriminated against because of her race, gender and nationality by one of the Company’s Directors.
The release said that Goppie sent the director a memorandum which said that during discussions between them, she was treated disrespectfully, she was an African Guyanese woman, and she found this degrading.
Management, the release said, barred Goppie from performing her duties and set up a panel to investigate her conduct.
“It is important that this charge of discrimination be investigated by the Ethnic Relations Commission by putting a mechanism in place where all evidence can flow with a view to getting to the truth and making the requisite recommendation,” the release said.
ERC Public Relations Officer Ms. Beverly Alert last week said the letter was received, and as is the case with all other complaints, the matter will be investigated.
GWI Public Relations Officer Mr. Timothy Austin said the company was not prepared to comment on the matter at this time.
ERC to investigate discrimination charge at GWI
THE Guyana Trades Union Congress (GTUC) has written the Ethnic Relations Commission (ERC) about alleged discrimination at Guyana Water Incorporated (GWI) against one of its employees.
According to a release from the GTUC, employee Ms. Marcel Goppie was allegedly discriminated against because of her race, gender and nationality by one of the Company’s Directors.
The release said that Goppie sent the director a memorandum which said that during discussions between them, she was treated disrespectfully, she was an African Guyanese woman, and she found this degrading.
Management, the release said, barred Goppie from performing her duties and set up a panel to investigate her conduct.
“It is important that this charge of discrimination be investigated by the Ethnic Relations Commission by putting a mechanism in place where all evidence can flow with a view to getting to the truth and making the requisite recommendation,” the release said.
ERC Public Relations Officer Ms. Beverly Alert last week said the letter was received, and as is the case with all other complaints, the matter will be investigated.
GWI Public Relations Officer Mr. Timothy Austin said the company was not prepared to comment on the matter at this time.
Cabinet outreach under way in Region Four
THE ongoing Cabinet outreaches moved to Region Four (Demerara/Mahaica) yesterday when it began on upper East Coast Demerara, with ministerial teams deployed to villages between Mahaica and Bare Root.
One team, comprising Minister of Finance, Mr Saisnarine Kowlessar and Minister within the Ministry of Labour, Human Services and Social Security, Ms Bibi Shadick, visited communities including Green Field, Clonbrook and Good Hope, the Government Information Agency (GINA) reported.
The agency said residents of Green Field expressed concern over vehicular traffic on the sea defence since the main access road south of the village deteriorated and they also complained that the recently constructed sea dam at Clonbrook is being severely damaged by cattle.
Another complaint was that access to potable water has been inhibited because several of the main pipes are broken and other worries related to school attendance by children and difficulty with obtaining birth certificates, GINA said.
The exercise will continue today in middle and lower East Coast Demerara, GINA said.
The agency said President Bharrat Jagdeo chaired a Cabinet meeting at State House on July 1, to discuss reports of interactions with residents in various communities of Regions Three (West Demerara/Essequibo Islands), Five (Mahaica/Berbice), Six (East Berbice/Corentyne) and 10 (Upper Demerara/Berbice) during outreaches in those places.
According to GINA, the Head of State was briefed on the issues raised and, subsequently, held discussions with technical officers from different Government departments and agencies, to ascertain the relevant and appropriate actions to be taken.
Guyana accepts COFAP formula for Regional Development Fund - Ambassador Harper
GUYANA has accepted the formula proposed by the Council on Finance and Planning (COFAP) for the Regional Development Fund (RDF), Ambassador to CARICOM, Ms Elisabeth Harper reported yesterday.
Reporting on discussions at the 27th summit of Heads of Government in St Kitts, she told the Government Information Agency (GINA): “We are only now into the substance of the agenda and the CSME (CARICOM Single Market and Economy was the first issue.”
Harper said Guyana and Jamaica were the only two countries which had to confirm their agreement, because that was outstanding following the COFAP proposition.
In that regard, she said Foreign Minister Rudy Insanally, who is leading the Guyana delegation, also said Guyana hopes that GDP (Gross Domestic Product) would play a key role in the criteria to be agreed for access to RDF resources.
Harper said Barbados Prime Minister Owen Arthur, the CARICOM Head of Government with responsibility for the CSME, was very vocal and supportive in proposing that a country’s GDP should be a factor.
She added, though, that the matter is still being discussed at the forum and the heads have been asked to agree to the RDF being established by December 31, 2006.
GINA noted that the RDF is being advanced to assist disadvantaged countries and is intended to help member states enhance respective production and trade capacities by redressing the growing intra-regional trade imbalance.
It said talks on pertinent regional issues are continuing and Harper indicated that the agenda is advancing with the CSME being at the top.
Shadick dismisses speculation that outreaches have political motive
MINISTER within the Ministry of Labour, Human Services and Social Security, Ms Bibi Shadick yesterday dismissed speculation about political motives being the driving force behind the Cabinet outreaches.
She reiterated, to the Government Information Agency (GINA), that the activities form part of the Administration’s efforts to engage communities in the thrust to intensify growth and development in every village, town and region.
Shadick said the main aim of the current series is to garner feedback from residents in contrast to campaigning which is about influencing the electorate to support a specific political group.
Ministerial delegations headed by President Bharrat Jagdeo have conducted such exercises over the past several weeks to ascertain the concerns of the people and similar ones were conducted last year.
But the Administration is determined to continue with them, Shadick declared.
She added that residents in villages across the regions which Cabinet outreaches spawned have said they appreciate the opportunity afforded them for their voices to be heard.
Region Three youths complete HIV/AIDS workshop
THE Regional Administration in Region Three (West Demerara/Essequibo Islands) has reported that 100 youths successfully completed a two-day workshop on prevention, sensitisation and awareness of Human Immuno Deficiency Virus (HIV)/Acquired Immuno Deficiency Syndrome (HIV/AIDS).
A press release said it was organised by the Ministry of Health, in collaboration with United Nations Family Planning Association (UNFPA) and the Organisation of Petroleum Exporting Countries (OPEC) Fund and held at Den Amstel Community Centre, West Coast Demerara.
The release said 75 of the participants were students drawn from various secondary and private schools across Region Three, with the other 25 being school dropouts from different communities.
Regional Chairman, Mr Esau Dookie, who delivered the feature address at the workshop last week, noted that there has been a “tremendous upsurge” in reported cases of people affected and afflicted by the deadly disease.
He said current statistics amplify the magnitude of the situation and exhorted the youths to make wise and healthy choices.
Dookie said fundamental lifestyle changes are critical to the ongoing fight against HIV/AIDS and counselling is a good mechanism which can provide information and educate people about the pandemic, the release stated.
Saboteurs again disrupt GT&T services
THE landline and cellular phone services of Guyana Telephone and Telegraph Company (GT&T) customers in communities along the East Bank Demerara, from McDoom to Linden, were disrupted for several hours yesterday because of saboteurs.
According to a press release from the company, the services of residents in Bartica were also disrupted after fibre cables in the vicinity of D’Aguiar Park, Houston were damaged.
The cable which runs overhead was cut at multiple points at the top of the pole early yesterday morning. The release added that this was done in the clear view of the public, since the perpetrator would have been forced to reach to the top of the pole to sever the cable.
Scheduled tasks for yesterday, including normal day to day repairs to consumer service in several areas, had to be deferred because of the sabotage, GT&T said.
According to the company, the consequences of such actions, including the effects on communicating abilities, particularly in the cases of emergencies and, more importantly, in instances where there are threats to national security, cannot be overemphasized.
The company said it continues to seek the public’s assistance in helping to maintain stability to their service by looking out for persons who disrupt the service.
In addition, the company continues to work with the security forces to ensure the preservation of the infrastructure as long as such occurrences continue.
Cellular phone customers in Georgetown also complained that their service was disrupted for most of the day.
However, GT&T Assistant Public Relations Officer, Mr. Oscar Clarke said the company was unaware of this situation.
Absent commissioners again stall GECOM work
THE work of the Guyana Elections Commission (GECOM) was put on hold again yesterday with the non-attendance of two opposition nominated commissions at the statutory meeting.
Chairman Dr. Steve Surujbally had to adjourn the meeting to tomorrow after opposition nominated commissioners Mr. Haslyn Parris and Mr. Lloyd Joseph failed to show. GECOM requires a quorum of two-opposition nominated commissioners and two government-nominated commissioners and the Chairman for meetings of the commission to be held.
Parris and Joseph on June 29 announced their withdrawal from the deliberations of the commission and saying they were giving active consideration to resigning.
Among their reasons were that the commission has taken a decision not to approach the court to obtain a definitive interpretation of the law with respect to a residency requirement to vote and that the GECOM Secretariat has failed to propose a method as to how the recently received results of the fingerprint matching exercised conducted by the Electoral Office of Jamaica (EOJ) are to be utilised to sanitise the Preliminary List of Electors, for which a revised list was posted as of Friday.
If Parris and Joseph fail to show at tomorrow’s meeting, a quorum could be formed with the government-nominated commissioners and the Chairman and GECOM could go ahead with its work towards administering general and regional elections which are constitutionally due by September 3.
Parris and Joseph, along with other opposition nominated Commissioner Mr. Robert Williams first withdrew from GECOM on April 15 over grouses with the leadership style of Surujbally.
Rodrigues for Suriname High Court
GUYANESE ex-cop Paul Rodrigues, one of three Guyanese said to be Roger Khan’s bodyguards who were arrested the same time as their boss by police in Suriname, but are still detained there, is to appear before the Suriname High Court this week.
Rodrigues, according to a Surinamese lawyer, is seeking to have a ban that prevents his lawyer from meeting him, lifted.
Similar moves will also be made on behalf of the two others, Sean Belfield and Lloyd Roberts, said the attorney who yesterday told the Guyana Chronicle via telephone that the Guyanese three are “doing well”.
On Friday, a motion by Suriname lawyer Irwnis Khanai, one of two lawyers retained there to look into Khan’s interest, currently being heard in the court to have Suriname rescind its decision to expel Khan thus allowing U.S. DEA agents to arrest him, will continue
At yesterday’s session, a written response which the court on Friday ordered Prosecutor- General Subhas Punwasi to submit in answer to Khanai’s motion, was done yesterday and the matter was adjourned to Friday when Khanai will respond, also in writing.
He expects the court to rule on the motion either Friday or on Monday.
Khan, Rodrigues, Belfield and Roberts were arrested during a huge drug bust, which Suriname Police said netted 213 kilos of cocaine on June 15 in Paramaribo.
But Khan who Suriname Minister of Justice, Mr Chandrikapersad Santokhi had linked to plots to assassinate key government and judicial officials in that country and was deemed a threat to national and international security, in addition to being investigated for cocaine trafficking, firearm possession and being part of a criminal gang and firearm possession, was in a strange twist expelled from Suriname on Thursday last.
Suriname police who said they had dropped all the charges against Khan, placed him on a Suriname Airways aircraft bound for Trinidad where once he arrived at Piarco Airport minus travel documents was handed over to the U.S. DEA agents who were there awaiting him.
He was then placed on a special jet which was also awaiting Khan’s arrival and spirited off to the U.S., where less than 24 hours after he was arraigned at the Brooklyn Federal Court in New York before Judge Roanne Mann on a charge of “conspiring to import cocaine”.
Khan, who was represented by Miami-based attorney-at-law, John Bergendahl, pleaded not guilty and was ordered to being kept at the Metropolitan Detention Center in downtown Brooklyn and will next appear before U.S. District Judge Dora Lizzette Irizarry, on August 4 at 10:30 h.
Yesterday afternoon, close associates, relatives and friends of the four men who on Sunday began mounting daily protests in support of the men being freed from both the Suriname and U.S. jails, demonstrated outside the CARICOM Secretariat, Turkeyen.
The placard-bearing group included Lisa Lawrie who has a one-year-old daughter, Rebecia, for Khan; Fiona Rodrigues, wife of Rodrigues and mother of two, along with ex-cops Eon `Gangsta’ Smith and Otis Grant.
In previous exercises they demonstrated at the 1763 monument site in Georgetown, the Suriname Embassy, Peter Rose Street, Queenstown and the United States Embassy Young Street, Kingston.
The group is disturbed at CARICOM’s silence over Khan’s alleged “kidnapping” in Trinidad by the U.S., and according to his lawyer Glen Hanoman in an earlier statement what appears to be complicity between Suriname, Trinidad and the U.S.
Lawrie on Monday decried Suriname’s deporting of Khan to the U.S. instead of Guyana through Trinidad as they made persons to believe.
“He is not an American, they have no right to send him to America, he is a Guyanese,” she said, adding that Guyana must also be faulted for not looking after its citizens.
Meanwhile, one of Khan’s local attorneys, Glen Hanoman, says he is baffled by the daily inconsistencies in statements attributed to Surinamese Justice Minister, Chandrikapersad.
Hanoman repeated an earlier report attributed to him in another section of the media about Khan telling a U.S. attorney that he recognised a DEA agent (name given) who kidnapped him.
“Yes, Khan told the attorney who met with him in the U.S. that he when he came around after he was taken from the prison he recognized (name given) as one of the persons he had a meeting with at Ocean View. He (Khan) said to him `Garry u kidnapping me ….’ He also told the attorney that Garry traveled with him to Trinidad and it was Garry who put him on the jet,” Hanoman told the Guyana Chronicle.
Hanoman said Suriname should be asked some hard questions as to why it allowed Garry, an American, entry into the Suriname prison to remove Khan, travel with him on the Suriname Airways flight to Trinidad and then place him on a jet to the U.S.
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