Directline Assurance staff. Photo/courtesy.
The Insurance Regulatory Authority (IRA) has dismissed reports about the supposed closure of Directline Assurance Company Limited, following coverage by some media outlets.
In a statement, IRA clarified that the matter regarding Directline Assurance’s ownership is currently under judicial review, and no winding-up process has taken place.
The authority stressed that the Insurance Act CAP 487, Laws of Kenya, provides clear legal procedures for the closure or winding-up of an insurance company, none of which have been initiated in this instance.
“All policies issued by Directline Assurance Company Limited remain valid and enforceable, and the insurer is still responsible for any claims,” stated IRA CEO Godfrey Kiptum.
In June, the IRA halted the closure of Directline Assurance Company Limited just hours after the initial announcement.
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The regulator’s statement followed an announcement by Royal Credit Limited, led by SK Macharia, owner of Citizen TV and Radio Citizen, stating that the insurer would cease operations, potentially leading to job losses.
As the company remains licensed, Kiptum emphasized its continued responsibility for any claims.
“The Authority holds the exclusive legal authority to approve, suspend, or cancel the operations of any insurance company in Kenya, a role that cannot be taken over by unauthorized entities,” Kiptum said.
“The insurer is now under increased scrutiny by the Authority, which will take any necessary action, in line with the provisions of the Insurance Act, CAP 487 Laws of Kenya, to ensure the company’s stability and protect the interests of policyholders.”
