Rejecting SK Macharia’s Attempt: Insurance Regulatory Authority Dismisses Dissolution of Directline Assurance
The Insurance Regulatory Authority (IRA) has rejected the attempt by SK Macharia, Director of Royal Media Services, to dissolve Directline Assurance company, terming the move as legally invalid.
In an official statement, the regulatory body emphasized that Macharia’s decision violated established legal principles.
According to IRA, Directline Assurance will continue its operations with the approval and license granted by the Authority intact.
The IRA asserted that all policies issued by Directline Assurance Company Limited remain valid, and the insurer remains responsible for any claims arising from these policies.
Additionally, IRA dismissed the proposed transfer of Directline Assurance company’s assets to Royal Credit Limited, deeming it unfeasible.
The regulator instructed all policyholders of the insurer to adhere to the terms outlined in their insurance contracts without interruption.
IRA reiterated its exclusive authority to approve, suspend, or revoke the operations of insurance companies in Kenya.
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Under heightened surveillance by the Authority, the insurer will be closely monitored, and necessary actions will be taken to ensure its sustainability and safeguard the interests of insurance policyholders, by the Insurance Act, CAP 487 Laws of Kenya.
The declaration comes hours after Macharia announced the immediate shutdown of Directline Assurance following IRA’s decision to freeze the company’s bank accounts.
Macharia also announced the immediate termination of all the company’s employees and that Royal Credit Limited would take over all assets owned by Directline.
The Royal Media Services boss faulted the regulator for failing to take action on Directline’s former directors whom he accused of mismanaging Ksh7 billion belonging to the company.
Rejecting SK Macharia’s Attempt: Insurance Regulatory Authority Dismisses Dissolution of Directline Assurance