Royal Credit denies insurance regulator claims, affirms Directline Assurance ceased operations

Royal Credit Limited has dismissed assertions by the Insurance Regulatory Authority (IRA) that Directline Assurance Company remains in operation.

In a statement signed by Dr SK Macharia, Royal Credit stated that Directline Assurance ceased operations on September 10 and that the IRA cannot purport to regulate a non-existent entity.

"We are the original and bona fide subscribers who incorporated Directline Assurance Company and were given approval by the then Finance Minister to do business, and the company was licensed by the regulator IRA," Dr Macharia said in the statement.

Royal Credit further stated that at no time has it sold or allotted shares to anyone or any entity, further adding that the allegations of shareholding disputes in court are based on a fraudulent CR12 which they say is misleading the public and the courts.

IRA CEO Godfrey Kiptum had responded to an earlier statement by Royal Credit regarding the closure of Directline Assurance Company, noting that the IRA was aware of the shareholding disputes in Directline and that the matter was before the court.

Royal Credit had stated that Directline Assurance Company was no longer subject to regulation by the IRA under Insurance Act Cap 487 or any other law.

The Royal Credit statement further says that anyone issuing Directline Assurance Company policies is doing so without the consent and authority of Directline Assurance Company or its shareholders. Any member of the public taking such policies does so at his/her own risk.

Directline further warns that the IRA shall be held liable for any incident or liability that may arise from such fraudulent policies through the fraudulent CR12, which it knows is fraudulent.

Royal Credit has also informed banks holding accounts for Directline Assurance Company that any payment of money not authorized by the shareholders will be deemed responsible, and the banks will be called to refund with full interest.