Directline Assurance has announced the termination of its issuance of insurance business effective September 10, 2024.
In a notice, the company says it has decided to close its insurance operations and noted that its shareholders have resolved to cease issuing insurance policies and stop conducting insurance business.
Moreover, it says any further transactions must be made through its original shareholders and termed a CR12 purporting to have other shareholders as fake and obtained through the backdoor.
Further, the termination indicates that the Association of Kenya Insurance Companies (AKI) is instructed not to issue insurance certificates or stickers in the name of Directline Assurance Company Limited from that date onwards.
"The company is no longer under the regulation of the Insurance Regulatory Authority as per the Insurance Act Cap 487. Subsequently, all banks dealing with Directline Assurance Company Limited are notified that the CR12 currently in circulation is fraudulent and does not reflect the true shareholding or directorship of the company."
Did you read this?
"They are prohibited from making any transactions not authorized by the real shareholders, who are Royal Credit Limited, S.K. Macharia, and Mrs. Macharia,” read the notice.
Directline accuses the IRA of permitting and continuing to permit the issuance of the fraudulent CR12 despite being fully aware of the fraud dating back to 2005.
Additionally, the company claims the fraudulent CR12 has been used to mislead the courts into making rulings that are prejudicial to the company's real shareholders.
Directline says the persons or entities listed in the fraudulent CR12 are neither shareholders nor directors of the company.
"They are liable for the employees they employed in the name of the company and also liable for the monies and assets worth over Kes 7 billion (out of which Kes 2.3 billion was paid to Actis, a UK-based company), which they took from the company contrary to Section 71 of the Insurance Act.”
