Since 2005, insurance companies and policyholders have collected Sh15 billion under the Policyholders Compensation Fund (PCF) to be utilised whenever an insurance company collapses.
The money being held by the insurance compensation fund has increased by 11 percent to Sh15 billion despite drawing cash to pay off policyholders of collapsed insurers.
Fund to settle claims of collapsed Concorde Insurance clients standardmedia.co.ke - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from standardmedia.co.ke Daily Mail and Mail on Sunday newspapers.
Payment of claims from collapsed insurers kicks off
Tuesday March 09 2021
By OTIATO GUGUYU
Summary
The Insurance Regulatory Authority (IRA) said they have began processing claims of Concord insurance which collapsed eight years ago and will move to Standard insurance company.
The Insurance regulator said it is tapping into the Policyholders Compensation Fund (PCF) set up 16 years ago for the first time to settle claims of the failed insurer, opening the way to pay back claims for other insurers.
The insurance regulator has started making Sh250,000 payout to policy holders and beneficiaries of collapsed insurers, making the first compensation in decades.