PORT OF SPAIN, Trinidad — A High Court judge has dismissed claims filed by two insurance agents challenging the constitutionality of the Central Bank (Amendment) Act 2011, which they said prevented them from taking legal action against the Colonial Life Insurance Company (CLICO) that received a multi-billion dollar government bail out after it went bankrupt a few years ago.

Justice Ricky Rahim dismissed the claims filed by Myron Rudder and Barbara Kanhai who had argued that the legislation was in violation of their rights under Sections 4 and 5 of the Constitution and also infringed on the principle of the separation of powers.

In his 62-page judgement Rahim dismissed the claims saying that they were not filed prior to the Act coming into force on September 20, 2011.

Additionally, Rudder and Kanhai were also ordered to pay 80 per cent of the legal costs incurred by CLICO.

The two insurance agents had further claimed that they had entered into written agreements with CLICO on August 1, 2001 and August 20, 2000, respectively, for inter alia the soliciting of applications for insurance and other financial products and receiving and remitting the initial premium on the applications.

They said as a result of the agreement, they were employees of CLICO and not independent contractors as they were at all times subject to the company’s direct control.

Successive Trinidad and Tobago governments had pumped billions of dollars (One TT dollar to US$0.16 cents) into the company, part of the CL Financial empire, that encountered financial difficulties in 2009.

Rudder told the court that as a result of the collapse, CLICO was in breach of the agreement. He said also that the company had failed to pay him commissions, managers’ bonuses and managers’ premium income benefits totalling more than TT$1.4 million.

For her part, Kanhai said the company failed to pay her commissions and contributions due on a pension plan in the total sum of $414,431.94 as at 2008.

CLICO had refused to pay the money but agreed in August 2011 to have an arbitrator appointed to settle the dispute.

However, Rudder said in March 2012, CLICO terminated the agreement with him, while kanhai said her agreement was terminated in June 2012.

However, the Central Bank (Amendment) Act came into force on September 20, 2011.

— CMC