Policyholders in Insurance Companies that have either collapsed or been placed under statutory management have been urged to come forward and lodge their claims for compensation through the Policyholders Compensation Fund (PCF).
This comes as PCF, a state Corporation under the Ministry of National Treasury and Economic Planning which has the mandate to protect insurance policy holders by providing compensation in the event of an insurer’s insolvency, intensifies nationwide outreach programme dubbed ‘PCF Mashinani’.
The Fund is currently providing financial relief to policy holders and claimants affected either by collapse or cancellation of license of the insurance companies.
Speaking today in Kakamega town to 100 boda boda cyclists and traffic police enforcement officers during the Fund’s campaign, Deputy Director, Corporate Affairs Rosemary Kavili revealed that the Fund is currently compensating policyholders with claims against Insurance companies with minimum payout increased to Sh500,000 per claim from Sh250,000.
The official said the Fund is currently compensating claims from policy holders and claimants of BlueShield Insurance Company Limited, United Insurance Company, Xplico Insurance Company and Invesco Assurance Company, all of which are under liquidation.
She said the Fund, which became operational from January 2005 has so far paid out Sh207. 5million in compensation to policy holders and claimants.
“This campaign is part of a nationwide initiative that seeks to engage members of the public on how the Fund operates, especially its compensation mechanism for policy holders affected by collapsed or troubled insurance companies. The initiative aims at creating awareness of its core mandate of compensating claimants of insurers placed under statutory management Kakamega is the 13th county to carry the sensitization”, She added.
“PCF is calling on all individuals who may not have lodged claims with the insurer or may not have lodged but have not yet received compensation to contact PCF directly/’, She added.
Kavili, told the participants that the move is aimed at restoring confidence in the insurance sector adding that claims can also be submitted either in person or through PCF official online platforms,www.pcf.go.ke.
Kakamega Central Deputy County Commissioner Titus Mulei, who represented the County Commissioner welcomed the initiative saying this should encourage consumers of insurance companies, including matatu owners and boda boda cyclists that they stand to receive compensation in the event of collapse of an insurer.
Chairman of boda boda operators Peter Ochango said the sensitization by PCF will encourage boda boda operators to take insurance cover for their motorcycles, noting that they will be assured of compensation in the event of theft or an accident.
The Policyholders Compensation Fund is targeting key sectors in its sensitization drive including the local media, boda boda riders, Matatu owners, Insurance agents who act as key links between insurer and the public, Teachers’ Unions, women groups, business community and National Government Administration Officers (NGAO) during the five days sensitization in Kakamega county.
By George Kaiga & Geofrey Wang’anya
