Policy holders of Xplico insurance that was placed under state management in December 2023 will receive up to Sh250,000 in compensation.
The Policy Holders Compensation Fund (PCF) has announced the the refunds which is the final nail in the insurers winding up process.
In a public notice, PCF directed all the affected parties to fill the online claims form on its website beginning June 4, 2024.
According to the PCF, the compensation phase will last for two years from the said date to June 3, 2026.
“Notice is hereby given that the Policyholders Compensation Fund in exercise of the powers conferred under section 179 of the Insurance Act and the Policyholders Compensation Fund Regulations 2010, has commenced payment of compensation to policyholders and claimants of Xplico Insurance Company Limited,”read the notice.
It added that the maximum amount payable to each policy holder is capped at sh250,000 per claim based on the statutory limits.
The compensation fund warned that policyholders who fail to make a claim for within two years from the date of notice shall not be entitled any payment.
Last December, Insurance Regulatory Authority (IRA) placed Xplico Insurance under statutory management and appointed PCF to manage the insurer.
In the 2023 directive, Xplico was prohibited by IRA from issuing any new insurance contracts from 8th December 2023.
Troubles for the insurer begun when a liquidation petition was filed by Doris Mwaka Mwakwekwe, on March 17th 2022.
“The insurer is prohibited from issuing any new insurance contracts from 8th December 2023. Its existing Policyholders are advised to immediately seek alternative covers from other licensed insurers to ensure that there is no unnecessary exposure,” IRA said in a statement in 2023.
