The Insurance Regulatory Authority (IRA) has dismissed claims regarding the alleged closure of Directline Assurance Company Limited following reports in some media outlets.
In a statement, IRA clarified that the issue surrounding Directline Assurance’s shareholding is currently under court review, and no winding-up has occurred.
IRA Chief Executive Officer (CEO) Godfrey Kiptum emphasized that the Insurance Act CAP 487, Laws of Kenya, outlines the legal procedures for closing or winding up an insurance company, none of which have been initiated in this case.
“All policies issued by Directline Assurance Company Limited remain in full force and effect, and the insurer remains liable for any claims arising therefrom.”
IRA had suspended the closure of Directline Assurance Company Limited a few hours after the closure in June.
Did you read this?
According to Capital News, the regulator responded after Royal Credit Limited, through SK Macharia, who owns Citizen TV and Radio Citizen, announced that the insurer would cease to operate, rendering numerous jobs vacant.
Since the insurer is still registered, Kiptum added that it is liable for any claims arising therefrom.
“The Authority has the sole statutory mandate to approve, suspend or cancel the operations of any insurance company in Kenya and this duty cannot be usurped by any unauthorized party.”
“The insurer has been placed under heightened surveillance by the Authority and the Authority will take necessary steps as may be appropriate, pursuant to the provisions of the Insurance Act, CAP 487 Laws of Kenya, to ensure sustainability of the insurer and protection of insurance policyholders’ interests.”
