The Insurance Regulatory Authority (IRA) has revoked the closure of Direct Line Assurance Company, barely a day after its owner, SK Macharia, announced the move, fired all employees, and dissolved the company’s board.
“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. The purported transfer of the assets of the insurer to any third party is therefore null and void ab initio (from the start),” IRA Chief Executive Godfery Kiptum has said, adding that all policies issued by Directline Assurance remain in full force and effect and the insurer remains liable for any claims arising therefrom.
“All policyholders of the insurer may continue with their operations in accordance with their insurance contracts. It is only the IRA that has the sole authority to ‘approve, suspend, or cancel’ the operations of any insurance company in Kenya,” Kiptum says.
This comes after SK Macharia on Monday announced closure of the company, dissolving the board and laying off all employees, a communication that caused panic mostly within the public transport sector, where the firm has the largest share of business.
IRA confirms that following yesterday’s announcement, Directline Assurance Company has now been placed under their radar and heightened surveillance.
