The Insurance Regulatory Authority (IRA) has revoked the closure of the Directline Assurance Company Limited in Nairobi by the Chairman of the Dr. Samuel K. Macharia through Royal Credit Limited.
IRA Commissioner of Insurance and Chief Executive Officer Godfrey Kiptum said the Authority has taken note of communication released by Dr. Samuel K. Macharia through Royal Credit Limited regarding operations of Directline Assurance Company Limited.
Kiptum termed the purported transfer of the assets of the Directline Assurance Company Limited to a third party as null and void.
‘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,’ said Kiptum.
In a press statement sent to newsrooms, Kiptum said all policies issued by Directline Assurance Company Limited remain in full force and effect, and stressed that the insurer remains liable for any claims arising therefrom.
‘All policyholders of the insurer may continue
with their operations in accordance with their insurance contracts,’ stated the Commissioner.
He at the same time said that it is only the Authority that has the sole statutory mandate to approve, suspend and cancel the operations of any insurance company in Kenya, adding that the mandate cannot be usurped by any unauthorized party.
Kiptum said the Authority has placed the insurer under heightened surveillance and will take necessary steps in 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.
Insurance Regulatory Authority is a State Corporation established under the Insurance Act, with the mandate to regulate, supervise and promote development of the insurance industry in the country by ensuring industry stability and market confidence.
Source: Kenya News Agency