Residents of Murang’a County are being sensitized on what to do if their insurance company collapses through a five-day awareness campaign by the Policyholders Compensation Fund (PCF).
PCF is a state corporation under the National Treasury, established in 2004 and operational since 2005. It was created after the collapse of several insurance companies to compensate policyholders and restore public confidence in the insurance sector.
The Fund acts as a safety net for policyholders when an insurer is placed under statutory management, or has its license cancelled by the Insurance Regulatory Authority (IRA).
Led by Director of Corporate Services Mamo Abudo, PCF officials say the exercise aims to educate residents on how to file claims and access compensation.
“We are here to sensitize residents on the mandate of PCF and the process to follow in case an insurer goes under and is placed under statutory management by the regulator, IRA.” said Abudo.
He noted that the Murang’a outreach is part of a nationwide campaign, with the county being the 15th stop.
Under its mandate, PCF compensates policyholders whose claims were not settled by insurers that have been declared insolvent. The Fund also monitors risks in the insurance sector and advises the government on policyholder protection.
Currently, the maximum compensation payable is Sh 500,000 and claims are processed within 90 working days after submission.
To qualify, claimants must have held a valid Kenyan insurance policy issued after January 2005 and must have filed a claim with the insurer before it was placed under statutory management. Applications for compensation must also be made within two years of the insurer’s collapse.
Some of the companies currently under statutory management include Trident Insurance Company Limited, KUSCCO Mutual Assurance Limited and Corporate Insurance Company Limited. Affected policyholders are being urged to submit their claims to PCF.
PCF Corporate Communications officer Rosemary Kaviri said the grassroots sensitization was prompted by low public awareness.
“We have realized that many Kenyans do not know about PCF or its mandate. Today we are engaging the bodaboda sector to ensure they understand what to do if their insurer collapses,” she said.
The five-day programme targets key groups including bodaboda and matatu operators, media practitioners, National Government Administrative Officers, as well as women and youth representatives.
Murang’a County Commissioner Hassan Bule welcomed the initiative, saying it will improve public confidence in the insurance sector.
“When government departments come to the counties for sensitisation, they improve access to important services. Citizens are now informed on what to do when an insurance company goes down,” he said.
He urged residents to attend such forums and called on more government agencies to roll out similar grassroots programmes to ensure services reach even remote areas.
Murang’a bodaboda chairman, Peter Mwangi, on his part, noted that the sector is a major consumer of insurance and he encouraged all operators to take up insurance policies in compliance with the law, so that they can also be compensated in case of accidents.
By Purity Mugo and Bernard Munyao
