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Clients of fallen insurers get Sh93 million compensation

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PCF’s deputy director of corporate communications Rosemary Kavili. FILE PHOTO | NMG

Policyholders Compensation Fund (PCF) says it has paid out a total of Sh93.1 million to customers of the collapsed Resolution Insurance, Concord Insurance and Standard Assurance Company Limited.

The amounts represent the cumulative payouts as of June 30, 2023.

The government agency, which pays customers of fallen insurers a maximum of Sh250,000 each, has called on more policyholders of troubled underwriters to file their claims.

Read: Resolution clients to get Sh250,000 after insurer fails

“We are calling on members of the public who have claims with Resolution Insurance Company (Under Statutory Management) and Standard Assurance Limited under liquidation to report them to PCF,” said PCF’s deputy director of corporate communications Rosemary Kavili.

She said that 724 Resolution claimants were paid a total of Sh82.21 million while out of 2,949 Concord claimants, 45 had been paid Sh9.02 million.

Standard Assurance collected the lowest payout of Sh1.95 million.

Resolution collapsed in early 2022 after it was unable to meet its obligations to clients, with its shareholders failing to recapitalise the business.

This was more than a decade after the fall of Concord, which went under in 2013. Standard Assurance collapsed in 2009.

Ms Kavili said that in an effort to reach out to more policyholders of collapsed insurers, PCF has launched a nationwide campaign to create awareness on claims settlement.

The campaign dubbed PCF Mtaani runs between December 4 and 8 with the aim of enhancing public understanding and knowledge on PCF.

The fund provides a last-resort protection scheme for policyholders and claimants when insurance companies collapse.

Read: Insurance compensation limit to increase on review

“Kisumu county is the fourth county the fund is engaging with its stakeholders since the launch of the program which is scheduled to be conducted in the 47 counties,” said Ms Kavili.

She added that the next engagement will be held in Mombasa County.

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