”The purported actions are null and void and devoid of any legal effect and as such the insurer continues in full operations as licensed and approved by the Authority. The purported transfer of assets of the insurer to a third party is therefore null and void ab initio”. – IRA
Billionaire business mogul S K Macharia has suffered a blow after his shock attempt to shut down Directline Assurance Company was blocked by the regulator – Insurance Regulatory Authority (IRA).
Macharia on Monday night made the shock announcement on prime news at his media station Citizen TV that he had shut down Directline Assurance Company that has a market share of 61% affecting thousands of motor vehicle owners.
The statement went on to say that he has terminated all the employees and businesses of the insurer and that all assets would be taken by his other company Royal Credit Limited.
But in a swift rejoinder IRA has termed the move by Macharia as null and void and devoid of any legal effect and as such the insurer continues in full operation as licensed and approved by the Authority.
IRA further said that the purported transfer of Directline Assurance assets to a third party (Royal Credit Ltd) was also null and void and that all policies issues by Directline remain in force.
“All policies issued by Directline Assurance Company Limited remain in full force and effect and the insurer remains liable for any claims arising from them. All policy holders of the insurer may continue with their operations in accordance with their insurance contracts,” said IRA.
IRA says it has the sole statutory mandate to approve or cancel the operations of any insurance company in Kenya and that the duty cannot be usurped by any unauthorized party.
The regulator said the insurer had been placed under heightened surveillance by the Authority and the Authority will take necessary steps as may be appropriate, to ensure the sustainability of the insurer and the protection of the policyholder’s interests.
