In a meeting of the House of Representatives last week Tuesday (December 01), Finance Minister, Hon. Nazim Burk presented a Bill to the Lower House which seeks to offer protection to citizens against insurance companies. This move is surely designed to offer protection to customers in the event that the insurance company collapses or s facing severe financial constraints as a result of imprudent financial investments. The Bill that was presented and approved by the legislators in the Lower House include a mandatory insurance fund, an increase in assets requirement, placing pension funds under the supervision of the Grenada Authority for the Regulations of Financial Institutions as well as increase fines for violating sections of the Bill. Start-up capital will move from EC$250,000 to EC$2 million for local companies while for foreign companies it will move from EC$750,000 to EC$5 million. Under the new legislation (which comes into effect next year) companies operating without a license will be fined EC$100,000 which is an increase from EC$30,000. Failure to provide an annual report by the last day of June each year will result in a fine of EC$200 per day. The new law is to become a sub-regional piece of legislation and Grenada has become the third country to approve it passage in the Parliament. Some insurance companies were unable to meet their payment to customers after they suffered damages with the passage of Hurricanes Ivan and Emily in 2004 and 2005 respectively. Also, the recent financial challenges plagued by CLICO have resulted in many persons, not only in Grenada but throughout the region, calling for more stringent regulations to govern the operation of insurance companies.