Insurance regulator bars popular PSV insurer from issuing more policies

Public Service Vehicles (PSVs) caught in traffic at Globe Roundabout Overpass, Nairobi. [Elvis Ogina, Standard]

Invesco Assurance Company, the firm offering covers to public service vehicles, has been barred from issuing insurance policies by the Insurance Regulatory Authority (IRA).

This comes weeks after the insurance company was hit with the highest fine of Sh24.94 million over missed deadlines for submitting audited books.

In a communique by IRA Chief Executive Officer Godfrey Kiptum, the company has been placed under liquidation, and an official receiver appointed.

"Following this Court Decree, Invesco Assurance Company Limited is stopped from issuing insurance policies and therefore not authorized to enter into any new contracts of insurance,"

"Invesco Assurance Company Limited has been placed under liquidation through a Decree of the Court dated 6. February 2023 issued in the High Court at Nairobi... The Court has further appointed the Official Receiver as the Provisional Liquidator," Kiptum's circular reads in part.

However, the regulator has reiterated that all claimants will be compensated as is required by the law.

"The Policyholders Compensation Fund will compensate the affected Claimants as provided for in Section 179 of the Insurance Act Cap 487 Laws of Kenya,"

In 2019, a party moved to court seeking the insurer's liquidation to settle debts of more than Sh29 million.

Since then the case has been dragged into the High Court and the debts had not been fully settled.

At the same time, Invesco was also battling another court case where it was challenging an order asking it to pay Sh53.28 million to 60 victims of road traffic accidents.

The maximum compensation payable by the Fund on any one claim lodged by a claimant is Sh250,000.

Reports by the IRA also show that the insurer had topped the fines chart with an Sh7.9 million penalty in 2020.

Xplico Insurance Company was fined Sh18.9 million, Takaful Insurance of Africa suffered an Sh7.59 million penalty as that of Resolution Insurance (now under statutory management) and Kenya Alliance of Insurance Company hit Sh1.99 million and Sh1.84 million respectively.

Other insurers who were fined were Trident Insurance (Sh900,000), Pioneer Insurance (Sh290,000), Corporate Insurance (220,000), Sanlam General (Sh200,000), and Monarch Insurance (S32,500).

"This report includes data for all the insurers and reinsurers regulated by the Authority except for African Merchant Assurance, The Monarch Insurance (General), Xplico Insurance, and Kuscco Mutual Assurance due to non-compliance with submission requirements," said IRA.

Premium Kebs now shifts focus to MSMEs to reverse 'State victim fear' tag
Premium How different financial markets affect economy
Premium How financial prices drive the economy in Kenya
Complaints over high cost, charging of electric vehicles