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By Remie Otieno
Clients who lost millions of shillings in the collapsed Standard Assurance Company have started receiving payments from Policyholders Compensation Fund (PCF).
It targets about 690 policyholder claims for the company which was put under liquidation over mismanagement by its top leadership – and marks the second time the Fund is making such a payment and, eight months after its first payout to policyholders of companies under Statutory Management.
The company targets to reimburse claimants for companies that have been declared insolvent and whose liquidation process has been approved by the courts of law.
“In undertaking this process, the Fund will compensate the policyholder claims of Standard Insurance Co. Ltd and subsequently undertake compensation of claimants of the other insurers,” noted PCF Managing Trustee William Masita in a statement.
Adding that, the fund has put in place an elaborate framework to ensure the successful implementation of the Compensation of Standard Assurance Co. Ltd policyholder claims and called on the PCF stakeholders to collaborate to ensure a seamless process of compensation.
“This Fund has put in place an elaborate framework to ensure the successful implementation of the Compensation of Standard Assurance Co. Ltd policyholder claims and the strategic collaboration of all stakeholders will be crucial in ensuring a seamless compensation process,” he said.
The maximum compensation payable by the Fund on any one claim lodged by a claimant is Kes. Sh250, 000, noting that Sh 250,000 limit is an amount aimed at cushioning the policyholders and not necessarily the actual amount of their claims.
“The decision to establish the Fund was a key initiative in the reform of the insurance sector. Its primary purpose is to protect policyholders of insolvent insurance companies by compensating them”, he explained.