Directline insurance moves to repair image amid shareholder wrangles

Forward Travelers chairman Paul Thiong'o, Directline Acting Principal Officer Sammy Kanyi and Eliakim Alando - Team Leader, Customer Corporate when the firm met with agents and officials from matatu saccos on Jan 18, 2025. [Wilberforce Okwiri, Standard] Directline Assurance is making efforts to repair its dented image following recent shareholder wrangles that have threatened to disrupt its business. The company, which is the largest insurer of public service vehicles (PSVs), last week rallied a section of the insurance sector as well as players in the matatu industry behind it in what could be a boost to its credibility that has taken a beating after one of its key shareholders warned customers that the covers issued by Directline are invalid. The firm has also gone to court seeking to stop the shareholder from running cautionary adverts warning motorists not to buy insurance products from the company. The firm now says it risks loss of business if the fight persists. "All covers paid are valid and we shall honour all claims that relate to these covers we have issued whenever the need arises," said Directline acting principal officer Sammy Kanyi when the firm met with some of its insurance agents and matatu owners on Tuesday. "The business remains fully operational despite a shareholder dispute at the company with the matter currently with the courts. We have faith in our judicial process and the management will continue to respect and uphold the rule of law." He added that Directline would "ensure that all valid claims are paid because once we settle claims, we will build confidence among the public". Last year, one of the company's shareholders, Samuel Kamau Macharia, warned the public against taking cover with the insurance company, defying an order from the Insurance Regulatory Authority (IRA) to stop meddling with the firm. Macharia, who holds a stake in Directline through Royal Credit Ltd, has been issuing cautionary adverts claiming that any insurance cover issued by the company is "invalid" due to the "illegal" alteration of the share registry. IRA, however, said the insurer is validly registered and must continue to pay claims arising from the over Sh4.86 billion in premiums received from customers and continue to sell new cover to willing clients. "All insurance policies issued by Directline Assurance Company Ltd remain in full force and effect," said IRA chief executive Godfrey Kiptum on December 23, 2024. "Policyholders are assured that their contracts remain valid, and the insurer is fully liable for any claims arising therefrom. Any purported status to the contrary is void of legal effect." Kanyi said the firm paid claims of Sh2.88 billion last year. About 10 per cent of this, or about Sh275 million, was released in December. He further said that between January 1 and 13, the firm had Sh62 million worth of claims. He added that while they had taken a beating following the shareholder fights, the company remained healthy having raked in an estimated Sh3.4 billion in revenues last year. "We have had engagements and ensured that the pending claims and commissions that had not been paid when this issue started have been paid. "This shows the confidence that the firm has in its team of agents," said Association of Kenya Professional Insurance Agents chairman Clifford Ochieng. Directline has a 59.8 per cent market share in the PSV insurance market, followed by Amaco with a 28 per cent share and GA Insurance with 6.3 per cent, according to industry data. "Despite the challenges in the last few months, Directline has been paying our claims. Whenever we have problems, we have reached out and they have assisted. The essence of insurance is the payment of claims, which the firm has been honouring," said Mt Kenya Matatu Association chairman Michael Kariuki.

Directline insurance moves to repair image amid shareholder wrangles

Get Full Access for Ksh299/Week.

Related Topics

Similar Articles

Latest Stories

The Standard Insider

Digger Classified

GET OUR NEWSLETTER

CONNECT WITH US

FOR THE LATEST JOB ADVERTS

Similar Articles

How harsh economy has pushed working Kenyans to side hustles

IM Group growth rises as Kakuzi posts profit rebound

Agriculture reaps big as Kenya secures Sh377 billion investment deals

Lamu port traffic surges but growth may be fleeting

DIGGER JOBS

Digger Motors

Digger Real Estate

Directline insurance moves to repair image amid shareholder wrangles

Get Full Access for Ksh299/Week.

Related Topics

Similar Articles

Latest Stories

The Standard Insider

Digger Classified

GET OUR NEWSLETTER

CONNECT WITH US

FOR THE LATEST JOB ADVERTS