Directline Assurance Company paid claims of Sh2.88 billion last year with close to a tenth of the money being released in December.
This comes amid shareholder wrangles, which threaten to affect the financial health of the leading insurer of public service vehicles (PSVs).
In a statement yesterday, Directline said in December 2024 alone, it paid Sh275.2 million in claims, a big chunk of it to PSVs. Another Sh19.1 million has been paid out in the first five days of January, the firm said.
“The Company wishes to reassure its customers that all insurance covers it has issued are valid. Directline paid Sh2.88 billion worth of claims in 2024, with Sh275.2 million paid in December 2024 alone,’’ said the Directline acting Principal Officer Sammy Kanyi.
“The business is fully operational despite a shareholder dispute at the company, with the matter currently with the courts. The company confirmed that it has and will continue to abide by all court rulings on the same.”
This comes at a time when one of Directline’s shareholders, media mogul Samuel Kamau Macharia, has warned the public against taking cover with the insurance company, defying an order from the Insurance Regulatory Authority (IRA) to stop meddling with the affairs of the firm.
Mr Macharia, who holds a stake in Directline through Royal Credit Ltd, has been issuing cautionary adverts claiming that any insurance cover issued by the company is “invalid” due to the “illegal” alteration of the share registry.
This is despite the regulator’s position that the insurer is validly registered and must continue to pay claims arising from the over Sh4.86 billion in premiums received from customers and continue to sell new cover to willing clients.
“All insurance policies issued by Directline Assurance Company Ltd remain in full force and effect. Policyholders are assured that their contracts remain valid, and the insurer is fully liable for any claims arising therefrom. Any purported status to the contrary is void of legal effect,” said Insurance Regulatory Authority Chief Executive Godfrey Kiptum on December 23.
On the shareholding wrangle, Kiptum distanced the IRA from the fight, noting that such matters are handled within the purview of the Business Registration Service and the Registrar of Companies.
“IRA has no legal mandate to alter such forms or make any changes whatsoever. Any person requiring any rectification of such records should make the necessary application to relevant statutory offices in accordance with the governing laws,” said Mr Kiptum.
Directline, which will be marking 25 years this year, is the biggest insurer of PSVs, having received over half of the premium earned by the industry by covering matatus and long-distance buses.
