The Policyholders Compensation Fund (PCF) has disbursed Ksh93.18 million in claims to 778 policyholders of three collapsed insurance firms dating back to June 30, 2023, the Fund’s Independent Trustee Deberious Sikuku has said.
Speaking during a 5-day sensitization campaign in Kisumu, Sikuku noted that the beneficiaries include 724 former clients of Resolution Insurance Company who have so far been compensated Ksh82.21 million.
The Insurance Regulatory Authority (IRA) placed the firm under statutory management in April 2022 after it ran into financial headwinds and was unable to fulfill its obligations.
Sikuku added that the Fund has also compensated claims worth Ksh9.02 million to 45 claimants of Concord Insurance which collapsed in 2013 and another Ksh9.02 million to 9 policyholders of Standard Assurance which collapsed in 2008. The two firms are under liquidation and their licenses have since been revoked.
He said that the Fund will traverse across the country calling upon the public to lodge their compensation claims, noting that they have accumulated Ksh19.1 billion so far.
“Currently, PCF awards a maximum compensation of up to Ksh250,000 per claim of general insurance,” he said.
However, he advised creditors with higher value claims to wait until the Company’s property and assets are auctioned through the liquidation process to be paid their dues.
Sikuku revealed that IRA has also issued a green light for PCF to initiate the processing and effect compensations in the coming year to the policyholders of the United Insurance and Blue Shield Insurance – both under statutory management.
“The rising trend of business failure in the insurance industry was attributed to insurance fraud, underpricing of insurance products, poor corporate governance practices, poor investment, economic downturns and global shocks,” he said.
By Fredrick Odiero
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