IRA fights back over Directline Insurance claims
Insurance Regulatory Authority Chief Executive Officer Godfrey Kiptum before National Assembly Departmental Committee on Finance and National Planning at Parliament Buildings Nairobi on August 31, 2023.
The Insurance Regulatory Authority (IRA) has rejected a demand by businessman Samuel Kamau Macharia (SK Macharia) for changes to the shareholding and ownership of Directline Assurance Company.
IRA chief executive officer Godfrey Kiptum said the regulator has no powers to change the list of shareholders on Directline’s official business registration documents (CR12) and referred Mr Macharia to the Registrar of Companies.
“IRA has no legal mandate to alter such forms or make any changes whatsoever. Any person requiring any rectification of such records should make the necessary application to relevant statutory offices in accordance with the governing laws,” Mr Kiptum stated.
The regulator said it would act to protect the interests of policyholders who have contracts with Directline as it asked the company to sort its issues in-house.
“Disputes regarding the shareholding of Directline Assurance Company Limited should be addressed by the shareholders through proper legal channels, outcomes of which the IRA shall fully abide by,” Mr Kiptum said.
The IRA chief also noted that there is lack of connection between changes in the shareholding of an insurance company and the validity of insurance policies it issues, thus stating that Directline remains fully liable for claims emanating from policies it has issued.
It accused Macharia of using his media outlets to make allegations that have no legal effect over the ownership of Directline.
Macharia has been in dispute over ownership of Directline with other shareholders for months now, sparking a series of battles before the IRA and in the courts, and even fighting with IRA over the matter.
