Defunct Standard Assurance policyholders set for Kshs. 172M pay

Standard Assurance Company policyholders are set to receive Kshs. 172.5 million as compensation from the Policyholders Compensation Fund.

However the fund has been capped at a maximum of Kshs. 250,000 per claim.

Standard Assurance Company was placed under statutory management on 11th March, 2009 after running into financial headwinds failing to pay claims.

At the time the underwriter was placed under statutory management the firm had accumulated Kshs. 1.2 billion in unpaid claims.

The Policyholders Compensation Fund (PCF) has officially commenced the process of payment of 690 policyholder claims for the company.

The fund has capped the maximum compensation payable by the fund on any one claim lodged by a claimant at quarter of a million shillings.

“In undertaking this process, the Fund will compensate the policyholder claims of Standard Insurance Co. Ltd and subsequently undertake compensation of claimants of the other insurers,” said William Masita, Managing Trustee PCF

This is the 2nd time that the Fund is making such a payment and comes 8 months after its 1st payout to policyholders of companies under Statutory Management.

Last year the fund paid Kshs. 390 million to claimants of Concord Insurance Company which collapsed in 2013 having gross premiums of Kshs. 181 million.

According to a schedule by the fund policy holders from the defunct Blue Shield Insurance Company will be paid a total of Kshs. 2.3 billion, United Insurance company which is also under statutory management will receive Kshs. 909.3 million.