Policyholders of collapsed insurance companies to be compensated

A insurance companies policyholders sensitization forum convened by the Policyholders Compensation Fund in Meru County. The Fund said members of the public who had claims with Blue Shield Insurance Limited and United Insurance Company which are under liquidation and Xplico Insurance Company and Invesco Insurance Company, both under statutory management, were urged to present their claims.[ Standard.]

The Policyholders Compensation Fund (PCF) will soon start to compensate policyholders of failed insurance companies.

Speaking in Meru town during a sensitization forum for the business community and various other groups, PCF Deputy Director, of Corporate Communications Rose Kavili said the agency was about to start the compensation for people who had taken various types of policies from collapsed companies and those under statutory management.

The PCF kicked off public sensitization engagement forums dubbed ‘PCF Mtaani’ where it is meeting boda boda operators, matatu owners, insurance agents, and other stakeholders.

Others include members of teacher's unions, religious groups, cooperatives, and government administrators in the counties.

Ms Kavili said the policyholders of companies that had been rendered insolvent, those whose licenses had been canceled or withdrawn for various reasons, had a right to get compensation.

 Kavili and other PCF officers announced that claimants should present their compensation claims with PCF.

Members of the public who had claims with Blue Shield Insurance Limited and United Insurance Company which are under liquidation and Xplico Insurance Company and Invesco Insurance Company, both under statutory management, were urged to present their claims.

“Currently, the Fund (PCF) is compensating the above four companies,” they said in a statement.

Established in 2004, the PCF's role is to provide relief to suffering policyholders who lost their monies due to collapsed insurance companies, and has so far paid millions of shillings to policyholders in those companies.

“PCF said the plan is part of their strategic plan to increase awareness of the agency’s mandate and functions as well as calling on the public to come forward and lodge their claims for insurance compensation.

“The maximum amount for compensation is currently gazette as Sh250,000 per claim,” It said.

The Fund started compensation for policyholders of collapsed insurance entities on March 10, 2021, following an amendment to the Insurance Act 2019.

As at September 30, 2024, the PCF had compensated policyholders for insurers that are statutory management and under liquidation.

It compensated 764 claimants who had policies in Resolution Insurance Company Ltd to the tune of Sh90.1 million.

Others were 45 claimants in Concord Insurance who got Sh9.02 million, 13 in Standard Assurance who received Sh2.95 million and 10 in Blue Shield were compensated to the tune of Sh2.23 million.

United Insurance had four claimants compensated to the tune of Sh514, 888 while Xplico had 54 who have so far received Sh11.81m.

“Ultimately, the sensitization engagement forums seek to enhance the public’s understanding and knowledge about PCF which provides a last resort protection scheme for policyholders and claimants when insurance companies collapse as well as give confidence to insurance policyholders and claimants,” it said in a statement.

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