IRA revokes closure of Directline Assurance
The Insurance Regulatory Authority (IRA) has nullified the closure of Directline Assurance Company Limited in Nairobi, which was ordered by Dr. Samuel K. Macharia through Royal Credit Limited.
Official Statement from IRA
IRA Commissioner of Insurance and Chief Executive Officer, Godfrey Kiptum, addressed the issue, emphasizing that the communication from Dr. Samuel K. Macharia via Royal Credit Limited regarding the operations of Directline Assurance Company Limited is invalid. Kiptum declared the supposed transfer of assets to a third party as legally ineffective.
“The purported actions are null and devoid of any legal effect and as such the insurer continues in full operation as licensed and approved by the Authority,” stated Kiptum.
Assurance to Policyholders
In a press release, Kiptum reassured all policyholders that their policies with Directline Assurance Company Limited remain valid and enforceable. The insurer is still liable for any claims, and policyholders can continue their operations as per their insurance contracts.
Authority’s Sole Mandate
Kiptum reiterated that only the IRA has the statutory mandate to approve, suspend, or cancel the operations of any insurance company in Kenya. This mandate cannot be overridden by any unauthorized entity.
The IRA has placed Directline Assurance Company Limited under increased surveillance to ensure its sustainability and protect the interests of policyholders, following the provisions of the Insurance Act, CAP 487 Laws of Kenya.
Role of the Insurance Regulatory Authority
The Insurance Regulatory Authority, a State Corporation established under the Insurance Act, is tasked with regulating, supervising, and promoting the development of the insurance industry in Kenya. Its goals include ensuring industry stability and fostering market confidence.
Conclusion
The revocation of the closure of Directline Assurance Company Limited underscores the IRA’s role in maintaining regulatory oversight and protecting the interests of policyholders. The company continues to operate fully under the IRA’s license and supervision, ensuring the continued validity of all insurance policies and claims.
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