Business & Financial News

Insurance regulator cancels licenses of Xplico, Invesco

Statutory manager means a person appointed by the Commission under this Subdivision for the purposes of managing the whole or such part of the business and affairs of a relevant person.

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By Phyllis MUCHOKI

The Insurance Regulatory Authority (IRA) has placed Xplico Insurance Company Limited under Statutory Management.

Consequently, the Authority has with immediate effect appointed the Policyholders Compensation Fund (PCF) as the Statutory Manager for Xplico Insurance Company Limited.

The insurer is prohibited from issuing any new insurance contracts from 8th December 2023.

Its existing Policyholders are advised to immediately seek alternative covers from other licensed insurers to ensure that there is no unnecessary exposure.

The Policyholders Compensation Fund will compensate the affected Claimants as provided for under the Insurance Act, CAP 487 Laws of Kenya.

At the same time, the Authority is in receipt of communication from the Official Receiver on his appointment as the Provisional Liquidator of Invesco Assurance Company Limited (the insurer) in Malindi Insolvency Cause No. 1 of 2018 – Dama Charo Nzai & 57 Others VS Invesco Assurance Company Limited, and Nairobi Insolvency Petition No. E015 of 2019 Salesio Kinyua Njagi & 9 Others VS Invesco Assurance Company Limited.

Statutory management means a procedure whereby the Commission takes immediate control and management of the SACCOS’ business and assets and may operate the SACCOS until the Commission permits it to resume business on its own subject to any terms and conditions the Commission may impose

The Official Receiver has taken over the affairs of Invesco Assurance Company Limited for the purposes of liquidation and the insurer’s licence is cancelled therewith.

The insurer is prohibited from issuing any new insurance policies with effect from 8th December 2023.

Its existing Policyholders are advised to immediately seek alternative covers from other licensed insurers to ensure that there is no unnecessary exposure.

The Policyholders Compensation Fund will compensate the affected claimants as provided for under the Insurance Act, Cap 487 Laws of Kenya.

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