The Policyholders Compensation Fund (PCF) has announced that it has distributed Sh93.1 million in compensation to clients of the now-defunct Resolution Insurance, Concord Insurance, and Standard Assurance Company Limited.
These payments represent the total amount compensated to policyholders as of June 30, 2023.
As a government entity responsible for assisting customers of failed insurance firms, PCF has a cap of Sh250,000 for individual payouts. The agency is actively encouraging policyholders of these and other troubled insurance companies to submit their claims.
Rosemary Kavili, the Deputy Director of Corporate Communications at PCF, urges individuals with pending claims against Resolution Insurance (currently under statutory management) and Standard Assurance Limited (under liquidation) to approach PCF. She disclosed that 724 claimants from Resolution have received a total of Sh82.21 million, while 45 out of 2,949 claimants from Concord have been compensated with Sh9.02 million. Standard Assurance saw the smallest payout, totaling Sh1.95 million.
Resolution Insurance faced collapse in early 2022 after failing to fulfill its client obligations, compounded by the inability of its shareholders to recapitalize the firm. This event followed over a decade after the downfall of Concord in 2013 and the collapse of Standard Assurance in 2009.
Kavili also highlighted PCF’s ongoing efforts to extend its reach to more policyholders of insolvent insurers. PCF has initiated a countrywide awareness campaign named “PCF Mtaani,” running from December 4 to 8. The campaign’s objective is to enhance public understanding and awareness of PCF’s claim settlement process.
PCF serves as a safety net for policyholders and claimants in the event of the collapse of insurance companies, providing essential protection in such scenarios.