Policyholders Compensation Fund on County sensitization initiative

By Isaac OGANGA

The Policyholders’ Compensation Fund (PCF) has set up camp in Mombasa County in a new campaign to educate the public on its mandate and functions in order to increase the public’s confidence in the insurance sector.

The campaign dubbed “PCF Mtaani” will traverse across all counties with a target of calling upon the public to come forward and lodge their claims with PCF for those members of the public who had claims with Resolution Insurance Company Limited (Under Statutory Management) and Standard Assurance Company (Under Liquidation).

The Five-Day campaign will see PCF meet with special interest targeted groups that include Media, Insurance Agents, Boda Boda/Tuk Tuk Riders, Matatu owners and other stakeholders including the DCCs/Chiefs, Business Community, Kuppet, Knut, Women, Youth, Religious groups and Co-operatives to sensitize them.

PCF said the move is part of the strategic plan to increase the level of awareness of the PCF’s mandate and functions as well as calling members of the public to come forward and lodge their claims for insurance compensation. The maximum amount for compensation is currently gazetted as KES 250,000 per claim.

The Fund launched compensation for policyholders of collapsed insurers on 10 th March, 2021 following an amendment to the Insurance Act in 2019. Worth noting is that prior to the amendment, compensation for policyholders and claimants only commenced upon a collapsed insurer being fully wound up in court.

Due to delays in the winding up process for insurers in court, policyholders were unable to lodge claims for compensation and were thus unable to receive any reprieve from compensation for their claims with the collapsed insurers.

The Fund spearheaded the amendment of the Insurance Act to replace the requirement for winding up with a requirement for insurers to be placed under statutory management or have their licences revoked for compensation to commence.

As at 31 st December, 2023, the status of compensation by the Fund for insurers under Statutory Management and Liquidation is as follows:

• Resolution Insurance Company Limited Seven Hundred and Forty-Four (744) claimants have so far been compensated amounting to Ksh. 86.37 million.

• Concord Insurance Company Limited

Forty-Five (45) claimants have so far been compensated amounting to Ksh.9.02

million.

• Standard Assurance Company Limited Ten (10) claimants have so far been compensated amounting to Ksh.2.197 million.

Mombasa County is the Fifth (5th) County the Fund is engaging with its stakeholders since the launch of PCF Mtaani sensitization engagements forum which is scheduled to be conducted in all the 47 counties. The next sensitization engagements by PCF will be in Garissa County.

Ultimately, the sensitization engagement forums seek to enhance the publics’ understanding and knowledge about PCF which provides a last-resort protection scheme for policyholders and claimants when insurance companies collapse as well as give confidence to insurance policyholders and claimants.

PCF will engage various different stakeholders from different sectors in Mombasa from 26th Feb – 1st March, 2024 as stated below:-

1.  Media – Monday 26th February, 2024

2.  Boda Boda /Tuk Tuk Riders -Tuesday 27th February, 2024

3.  Matatu Operators- Wednesday 28th February, 2024

4 . Insurance Agents – Thursday 29 th February, 2024

5.  Other Stakeholders (DCCs/Chiefs KNNCI, KUPPET, KNUT, Women, Youth, PWDs & Religious Groups – Friday 1st March, 2024.