Nyeri: In a move aimed at increasing public awareness, the Policyholders Compensation Fund (PCF) has intensified grassroots sensitization forums with various groups to educate them about its mandate and functions. The Fund’s Corporate Communications Deputy Director, Rosemary Kavili, emphasizes that PCF is keen on ensuring that Kenyans, regardless of their location, understand how to seek redress from the agency without encountering barriers.
According to Kenya News Agency, speaking at the commencement of a five-day sensitization forum in Nyeri, Ms. Kavili informed journalists that the agency aims to use the forums, named PCF Mtaani, to boost public confidence in the insurance sector. “Through PCF Mtaani, we are able to educate people on our mandate because we are majorly in Nairobi, and nobody will hear us, nobody will see us, nobody will know the mandate that is bestowed on us as an agency by the government if we remain in the capital city,” she stated during a journalists’ sensitization forum held at the Nyeri National Polytechnic.
Nyeri marks the 14th county where PCF has established its presence. During their stay, the fund plans to engage with boda boda and matatu operators and has organized sessions with National Government Administration Officers, teachers’ unions, and special interest groups. They will also meet with religious groups, the Kenya National Chamber of Commerce and Industry, farmers’ cooperatives, and insurance agents.
Ms. Kavili highlighted that topics covered during the forums will include how to lodge claims for insurance compensation if an insurer is placed under statutory management or its license is canceled. She cited poor governance practices, insurance fraud, under-pricing of insurance products, economic downturns, and global shocks as reasons for the collapse of insurance companies.
“There are about 20 listed collapsed insurers in the country, some dating back to the late 90s. We also have more recent cases like Resolution Insurance (2022), Xplico Insurance (2023), and Invesco, which collapsed in 2024. We discovered that despite being in existence since 2005, people are not aware of what steps to take when such events occur while others do not know that they can actually pursue compensation,” Ms. Kavili noted.
The fund’s asset base is Sh24 billion, with a maximum compensation amount per claim capped at Sh250,000. Ms. Kavili mentioned that PCF began compensating policyholders and claimants of insurers under statutory management or whose license has been canceled in the financial year 2020/2021.
A report by the fund shows that a total of 1,426 claims amounting to Sh240 million have been settled. In the 2020/2021 fiscal year, the fund paid out Sh5.6 million to 25 claimants, while in the 2021/2022 fiscal year, it disbursed Sh18.5 million to 91 claimants. The fiscal year 2022/2023 saw payments of Sh65.9 million to 624 claimants, and the subsequent year, the fund compensated 44 claimants with Sh8.5 million.
Over the last financial year, the PCF released Sh108 million to 494 claimants. During the current fiscal year, the fund has already disbursed Sh32.9 million to 148 claimants. As of June 30, the fund had managed to settle nearly half of the claims lodged for seven insurers under statutory management or liquidation.
For Resolution Insurance, 767 out of 896 claims were settled, amounting to Sh90.86 million. The fund settled all 45 claims related to Concord Insurance, totaling Sh9.03 million. PCF has compensated Sh4.63 million for 21 out of 31 claims lodged for Standard Assurance.
Additionally, the fund processed Sh14.44 million for 77 BlueShield Insurance claimants and Sh772,000 for 6 United Insurance claimants. Of the 896 claims regarding Xplico, the fund compensated Sh77.56 million for 342 claims. For the recently collapsed Invesco Assurance, 372 compensation claims were lodged, but the fund settled 185 claims worth Sh42.82 million.
Ms. Kavili stated that the fund aims to address challenges related to the two-year processing timeframe for payments through PCF Mtaani by enlightening the public on the procedures and timelines for lodging compensation claims.
