The Insurance Regulatory Authority (IRA) has reaffirmed its regulatory authority over Directline Assurance Company Limited, countering recent claims made by Dr. S. K. Macharia via Royal Credit Limited about the insurer’s operations and asset transfers.
The IRA has declared these actions as legally void, ensuring policyholders that Directline Assurance remains fully operational and compliant.
In a press release issued from Nairobi on June 11, 2024, the IRA emphasized its exclusive mandate to oversee the operations of insurance companies in Kenya. This statement comes in response to Dr. S. K. Macharia’s announcement, which purported an unauthorized transfer of Directline Assurance’s assets. The IRA categorically dismissed these claims, labeling them as “null and devoid of any legal effect.”
“All policies issued by Directline Assurance Company Limited remain in full force and effect and the insurer remains liable for any claims arising therefrom,” the IRA stated, providing assurance to policyholders regarding the continuity of their insurance coverage.
The IRA has also placed Directline Assurance under heightened surveillance to safeguard the insurer’s sustainability and protect policyholders’ interests.
This measure is in line with the provisions of the Insurance Act, CAP 487 Laws of Kenya, which grants the IRA the authority to approve, suspend, or cancel the operations of insurance companies in the country.
