Blue Shield Insurance placed under receivership

By John Oyuke

Public Service Vehicles (PSV) insurer, Blue Shield Insurance Company Limited has been placed under receivership with immediate effect.

The action, which has left thousands of motor vehicle policyholders with worthless stickers, follows failure by the insurer to meet debt obligations to policyholders.

The Commissioner of Insurance, Sammy Makove, said the insurer is not authorised to transact new business henceforth, and all enquiries will now be forwarded to the statutory manager.

He appointed Eliud Muriithi as the statutory manager who will now communicate with policyholders and creditors on the way ahead.

Makove, who is also Insurance Regulatory Authority Chief Executive, said the firm has not been able to meet its obligations as an insurer, including the payment of claims to claimants and policyholders as well as other creditors.

"The insurer is not able to meet its statutory obligations including the payment of levies as prescribed in the Insurance Act," he said during a news conference in Nairobi Friday.

He said IRA Board approved placement of the firm under statutory management as provided under Section 67 (2) of the Insurance Act to prevent further exposure to the insuring public.