IRA declares closure of Directline Assurance Company null and void

Business
By Edwin Nyarangi | Jun 11, 2024
IRA CEO Godfrey Kiptum during the Continental Reinsurance 10 years anniversary Celebrations, on Thursday, October 11 2018. [David Njaaga, Standard]

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. 

 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.

Share this story
Experts call on farmers to grow drought resilient crops
Farmers need to embrace irrigation and growing resilient crops such as cassava, sweet potato, finger millet, and sorghum, as part of climate-smart agriculture.
Regulation of fintech must promote stability and innovation
Regulators should be trained to understand and manage complex fintech innovations, ensuring that oversight keeps pace with technological progress.
Ongoing labour unrests are early signs of an economy that's about to collapse
What seems lost to these well-established political and bureaucratic mercenaries is that pervasive socio-economic order has its limits both in society and the economy.
Trailers and weighbridges: The untold story
By lifting one axle, the drivers manage to carry more load than allowed by the law.
KTDA moves to restore order in tea bonus declarations
The Kenya Tea Development Agency has advised its directors to remain firm and follow the procedures when declaring final payments for the year 2023/2024.
.
RECOMMENDED NEWS