Insurance regulator refutes closure of Directline Assurance
A CR12 is an official confirmation by the Registrar of Companies detailing who the directors/shareholders of a company are.
Insurance Regulatory Authority (IRA) has dismissed the move by shareholders of matatu insurer Directline Assurance to close down the firm.
The firm on Tuesday had announced its decision to terminate its issuance of insurance business with immediate effect.
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It had directed that any further transactions were to be made through its original shareholders, terming a CR12 purporting to have other shareholders as fake and obtained through the backdoor.
A CR12 is an official confirmation by the Registrar of Companies detailing who the directors/shareholders of a company are.
Policyholders and other stakeholders such as banks were thus prohibited from making any transactions not authorised by the real shareholders, who are Royal Credit Limited, S.K. Macharia, and Mrs. Macharia.
The regulator, however, says the matter of the policy provider regarding shareholding is awaiting determination in court.
It adds that the Insurance Act CAP 487 Laws of Kenya provides a clear process for closing or winding up an insurance company, deeming the firm's announcement null and void.
"Consequently, all policies issued by Directline Assurance Company Limited remain in full force and effect and the insurer remains liable for any claims arising therefrom," IRA says.
"All policyholders of the insurer may continue with their operations in accordance with their insurance contract."
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