Resolution Insurance policyholders set for compensation

In a notice on Friday, the fund has asked policyholders and claimants with unsettled claims to file and submit claims to the fund from Monday next week.

The submission of the claim forms is to be followed by the verification and approval of payments which is estimated to take 30 days.

The maximum compensation payable on a single claim lodged by a claimant has been set at Ksh.250,000 in line with PCF provisions.

Resolution Insurance was placed under the oversight of the Insurance Regulatory Authority (IRA) on April 5 after running into financial headwinds.

The PCF was subsequently appointed as the statutory manager for the underwriter for a period of 12 months.

All policyholders issued by Resolution were cancelled from April 5 and a moratorium was declared on the payment of the insurer to its policyholders and all other creditors over the next year.

Last month, Resolution halted the issuance of new non-medical policies after measures to raise additional capital fell through, exposing the company to working capital constraints.

Resolution’s liquidity crunch set in just one year on after the exit of Leapfrog Investments, a private equity arm which had taken a controlling stake in the underwriter.