Businesses & Financial News

Policy holders of Concord insurance eye Sh392M windfall

By Steve Umidha

Policyholders Compensation Fund (PCF) Wednesday began payouts amounting to over Sh392million to policyholders of Concord Insurance Company Ltd which was placed in liquidation more than eight years ago.

PCF Managing Trustee William Masita, Insurance Regulatory Authority (IRA) Godfrey Kiptum as well as Treasury CS Ukur Yatani announced a clear roadmap on how such payments will be conducted with policy holders with smaller claims likely to be prioritized.

The fund commenced compensation of claimants for companies that have been declared insolvent and whose liquidation process has been approved by the courts.

At least 1, 572 claimants are expected benefit from the payments, with PCF set to begin settlement process of claims worth Sh467 million in total.

The maximum compensation payable by the Fund on any single claim is capped at Sh250, 000.

This comes even after it emerged that only eight of the 2,949 policyholders had come out to claim the Sh247 million set aside from the PCF as of April this year – an unprecedented apathy that had triggered a 30-day an extension for making claims by the fund.

Insurance firms Blue Shield Insurance, United Insurance Company, Standard Assurance Company, Concord Insurance Company, Access Insurance Company, Stallion Insurance Company Ltd and Lakestar Insurance Company all went under with policyholders claims.

They were put on receivership but their shareholders and the regulator have been caught up in endless litigation leaving policyholders to wait decades without recovering their money.

The Fund was established in 2005 for the primary purpose of providing compensation to policyholders of an insurer that has been put under Statutory Management and for the secondary purpose of increasing the general public’s confidence in the insurance sector.

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