Resolution Insurance clients to start lodging claims on Monday
Resolution Insurance clients to start lodging claims on Monday
The Policyholders Compensation Fund (PCF) will begin receiving claims from Resolution Insurance policyholders starting Monday, April 25.
The fund is expected to verify and approve payments within a month of their submission.
The payments for the policyholders in the underwriter, which fell under regulatory oversight on April 5, are capped at a maximum Kes250,000 per policy.
The Commissioner of Insurance appointed PCF as the statutory manager of the underwriter which has been struggling to stay afloat in recent times.
Resolution Insurance has been unable to pay claims to policyholders, claimants, and other creditors besides breaching statutory obligations to submit returns to the regulator, the Commissioner of Insurane said.
The insurance regulator blocked shareholders of Resolution Insurance from accessing funds controlled by an owner of rival Xplico Insurance to recapitalise the firm before it collapsed with Kes6.5 billion in client cash, court documents seen by Business Daily revealed.
Read also: IRA takes over crisis-saddled Resolution Insurance
The court papers filed by Peter Nduati, who was the face of Resolution, show that New Point Capital, a UK fund owned by Keith Beekmeyer, was to provide over Kes691 million ($6 million) for investment in the Kenyan insurer by Linkham Services Ltd.
The PCF is a State Corporation set up pursuant to Section 179 of the Insurance Act to provide compensation to the claimants of an insurer placed under Statutory Management.
