Xplico policyholders, creditors get extension to make claims
Policyholders Compensation Fund (PCF) said the decision was arrived at as a result of orders issued by the High Court on December 10, 2024, which extended the period of statutory management of the insurer by three months.
Policyholders and other creditors owed by Xplico Insurance have up to March 7, 2025, to claim their dues after a moratorium on payments was extended for three months following expiry of the earlier deadline set for December 8 last year.
In a public notice on Tuesday, the Policyholders Compensation Fund (PCF) said the decision was arrived at as a result of orders issued by the High Court on December 10, 2024, which extended the period of statutory management of the insurer by three months.
PCF was appointed the statutory manager for Xplico by the Insurance Regulatory Authority (IRA) on December 8, 2023, for a period of one year, effectively halting the issuance of any new contracts by the company following a legal petition by a creditor named Dorice Mwaka Mwakwekwe.
“Pursuant to the application by the Commissioner of Insurance and to the orders issued by the High Court on December 10, 2024, the period of statutory management in respect of Xplico Insurance has been extended for three months,” wrote PCF in the Tuesday notice.
“In exercise of powers conferred upon PCF by section 67C (10) of the Insurance Act, PCF hereby extends the moratorium on payments by the said insurer to its policyholders and all other creditors for a period of three months with effect from December 8, 2024, to March 7, 2025.”
PCF started the payments and compensation of Xplico policyholders earlier in June last year, capping the maximum payable to each beneficiary at Sh250,000 per claim in accordance with statutory limits.
Xplico’s troubles hit a crescendo in March 2022 when Ms Mwakwekwe moved to court seeking to secure orders to wind up the insurer over an undisclosed debt.
The liquidation petition came at a time when Xplico was facing a tough operating environment and had run afoul of the regulator after it failed to disclose its entire financials for the fourth quarter ended December 2021.
The firm had also seen a decline in business over the year ended December 2021 besides boardroom wrangles over ownership that lasted nearly a decade.
In the third quarter of 2021, public service vehicle owners ditched the insurer, shrinking its market share in the category by almost two-thirds from 21.9 percent to 7.5 percent.
By the end of the fourth quarter, Xplico had the most customer complaints at 26, pointing to the firm’s failure to settle customer claims on time.
