IRA declares closure of Directline Assurance Company null and void
Business
By
Edwin Nyarangi
| Jun 11, 2024
The Insurance Regulatory Authority(IRA) has termed as null and void communication made by Royal Credit Limited in regards to the operations of Directline Assurance Company.
IRA CEO Godfrey Kiptum in statement issued to newsrooms said that the purported actions are null and devoid of any legal effect and as such the insurer continues in full operation as licensed and approved by the Authority.
Kiptum said that the purported transfer of the assets of Directline Assurance Company associated with Royal Media Services Chairman Samuel Kamau Macharia to any third party is therefore null and void.
"All policies issued by Directline Assurance Company Limited remain in full force and effect and the insurer remains liable for any claims arising there from," said Kiptum.
The IRA CEO directed that All policyholders of the insurer may continue with their operations in accordance with their insurance contracts.
READ MORE
Curriculum delivery is a marathon, not a sprint
Recipe for rigging: Battle looms over plan to scrap IEBC's livestreaming of election results
Why Ruto rejected Public Procurement (Amendment) Bill, 2024
Kenya shines at Zone Individual Chess Championship in Ethiopia
Police-linked brutality victims in court, claim opaque compensation process
Safe but scared...: Tales of Mathare floods survivors
Inside huge cash withdrawals from affordable housing kitty
Prof Mutua should face MPs for grilling on victims payouts
Government should address issues raised by young people without resorting to intimidation
Subaru driver in a dramatic high-speed chase after alleged hit-and-run in Nairobi
He said that IRA 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.
Kiptum said that the insurer has been placed under heightened surveillance by the Authority which will take necessary steps as may be appropriate, pursuant to the provisions of the Insurance Act, CAP 487 Laws of Kenya.
"This is to ensure sustainability of the insurer and protection of insurance policyholders' interests," said Kiptum.
Macharia who is also the Chairman of Royal Credit Limited announced yesterday that Directline Assurance Company which commands the largest share of the Public Service Vehicle Insurance has ceased its operations in the country.
Macharia in a statement aired on Citizen Television on Monday night said the company had stopped offering services and terminated its staff contracts with all assets owned by Directline being taken over by Royal Credit Limited.
"The latest decision has been occasioned due to all the closure of all Directline Assurance Company bank accounts by the Insurance Regulatory Authority," said Macharia.
Airtel goes big with data centre to be ready by July 2027
Airtel Kenya is building a major data centre, expanding network coverage and launching new services to strengthen Kenya's digital economy.Ruto's privatisation push boosts forex reserves to record $15.4b
Kenya's foreign exchange reserves surged to a record $15.4 billion (Sh1.99 trillion) in the week ended July 30, providing the country with 6.4 months of import cover, the apex bank said on Friday.Smarter water technologies hold the key to ending Africa's hunger crisis
Africa urged to expand irrigation and integrated water systems, saying better water management is key to food security and climate resilience.Uganda takes control of Kenya Pipeline as Museveni secures veto power, two board seats
Uganda has gained board seats and veto powers at KPC, raising concerns over Kenya's control of its strategic fuel transport infrastructure.Britam gets court's nod to shed off Sh5 billion from its share capital to clear losses
High Court approved Britam's plan to reduce share capital reserves by Sh5.8 billion to offset accumulated losses and strengthen its balance sheet. SOEs:MOST READ
- Ruto's privatisation push boosts forex reserves to record $15.4b
FINANCIAL STANDARD
By Brian Ngugi
- Smarter water technologies hold the key to ending Africa's hunger crisis
FINANCIAL STANDARD
By Edward Davis
- Uganda takes control of Kenya Pipeline as Museveni secures veto power, two board seats
FINANCIAL STANDARD
By Brian Ngugi