Policyholders with the failed insurer Concord Insurance are to start receiving a maximum KSH250,000 payout from the country’s Policyholders Compensation Fund (PCF).
The Kenyan Insurance Regulatory Authority (IRA) told Business Daily that payments will start with Concord but will then move onto Standard Insurance. Other recently failed companies include Blue Shield Insurance, United Insurance Company, Access Insurance Company, Stallion Insurance Company and Lakestar Insurance Company.
The required PCF form now sits at the top of the IRA website homepage. The PCF was set up 16 years ago to settle claims against failed insurers and also to pave the way to pay back claims for other insurers.
PCF managing trustee William Masita said: “This is the first time since its establishment that the fund is compensating policyholder claims for insolvent insurance companies. The maximum compensation payable by the fund on any one claim lodged by a claimant is KSH250,000.”
So far, 1,572 beneficiaries of Concord Insurance have made a claim, which puts the estimated pay out at KSH392m. The IRA, however, expects more claims.
Commissioner of insurance Godfrey Kiptum told the newspaper: “We have started with Concord and Standard Insurance because their matters have been concluded; the others are still in court and we hope they shall soon be resolved.”
Insurers contribute to the PCF through the payment of a levy equivalent to 0.25% of their premium receipts. It had amassed KSH10.6bn in assets as of June 2019