Resolution Insurance Policy holders begin submitting their claims to the Policy Holders Compensation Fund(PHCF) on Monday, 25th April 2022.
The Fund is expected to verify and approve payments within a month of submission.
The payments for the policyholders in the underwriter which fell under regulatory oversight on April 5th 2022, are capped at a maximum KSh250,000 per policy.
The purpose of the Fund is to protect policyholders of an insolvent Insurance Company by providing them with compensation for unsettled claims.
The Fund promotes confidence in the insurance industry by safeguarding the interests of policyholders.
Policyholders are at the moment required to contribute to the Fund 0.25% of the premium payable every month. Providers of insurance policies contribute to the fund a sum equivalent to 0.25% of the premiums paid by the respective policyholders every month.
Troubles for Resolution begun when the firm raised money from several investors and expanded into the medical and general insurance business.
Resolution joins a long list of underwriters who have since gone under, including Lakestar Insurance, United Insurance, Blue Shield Insurance, Access Insurance Company, Stallion Insurance Company Ltd, Concord Insurance, and State-owned Kenya National Assurance Company (KNAC).
At the time of its collapse, several medical facilities are said to have rejected covers from Resolution Insurance while clients were cancelling their covers and demanding refunds for services not rendered.
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