Safety Nets Unveiled.

Policyholders Compensation Fund Restores Hope with Sh93 Million Payout.

In a bid to resurrect the financial security of clients affected by the demise of insurers, the Policyholders Compensation Fund (PCF) has disbursed a substantial sum of Sh93.1 million to beneficiaries of the collapsed Resolution Insurance, Concord Insurance, and Standard Assurance Company Limited. This significant payout milestone, as of June 30, 2023, underscores the commitment of the government agency to provide relief to policyholders grappling with the fallout of insurer failures.

PCF, renowned for extending a maximum compensation of Sh250,000 to each affected customer, has urged individuals with claims against troubled underwriters to come forward and file their claims promptly. Rosemary Kavili, PCF’s deputy director of corporate communications, emphasized the importance of this outreach, encouraging those affected by the collapse of Resolution Insurance Company and Standard Assurance Limited to report their claims to PCF.

The breakdown of the payouts reveals that 724 Resolution claimants received a total of Sh82.21 million, while 45 out of 2,949 Concord claimants were compensated with Sh9.02 million. Standard Assurance, facing the lowest payout of Sh1.95 million, succumbed to financial challenges back in 2009.

Resolution Insurance's collapse in early 2022 marked a turning point, with the company unable to fulfill its obligations to clients, leading to the failure of shareholder efforts to recapitalize the business. Concord Insurance had met a similar fate in 2013, and Standard Assurance had collapsed in 2009, illustrating the extended challenges faced by these insurers over the years.

To reach a wider audience of policyholders affected by insurer collapses, PCF has initiated a nationwide campaign named "PCF Mtaani," running from December 4 to 8. The campaign aims to enhance public awareness and understanding of the claims settlement process, providing a last-resort protection scheme for policyholders and claimants in the wake of insurance company collapses.

Highlighting their commitment to engagement, Ms. Kavili mentioned that Kisumu County is the fourth county involved in the program, with plans to extend the campaign across all 47 counties. The next engagement is anticipated to take place in Mombasa County.

As PCF continues its mission to provide financial relief and awareness, the Compensation Fund stands as a beacon of hope for policyholders seeking restitution in the aftermath of insurance company failures.