IRA revokes closure of Directline Assurance by Macharia

The Insurance Regulatory Authority (IRA) has thrown down the gauntlet in response to Royal Media Services Director SK Macharia's bold attempt to dissolve Directline Assurance company, denouncing it as a futile endeavor.

In a strikingly assertive statement, IRA dismantled Macharia's maneuver as a breach of legal protocol. Asserting its jurisdiction, the regulatory body affirmed Directline Assurance's operational legitimacy under its existing license, effectively thwarting Macharia's efforts.

With unwavering confidence, IRA assured the continuity of policies issued by Directline Assurance, firmly reiterating the insurer's ongoing liability for any claims. Any notion of asset transfer to Royal Credit Limited was swiftly dismissed as fantastical by the regulatory watchdog.

In a firm directive, IRA instructed all policyholders to honor their agreements as per their insurance contracts, underscoring its sole authority to regulate, suspend, or revoke insurance operations within Kenya.

"The insurer is now under heightened scrutiny by the Authority, and appropriate action will be taken," IRA declared, citing the Insurance Act, CAP 487 Laws of Kenya, as its legal mandate to safeguard the insurer's viability and policyholders' interests.

This resolute stance came hot on the heels of Macharia's bombshell announcement of Directline Assurance's immediate closure, triggered by IRA's freeze on the company's bank accounts. Macharia didn't stop there, promptly terminating all employees and signaling the transfer of assets to Royal Credit Limited.

In a blistering rebuke, Macharia lambasted IRA's failure to hold former Directline directors accountable, accusing them of mismanaging a staggering Ksh7 billion belonging to the company.