The Lower Eastern Times Opening The Third Eye
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Directline Assurance has immediately ceased issuing new insurance policies.
The company announced that all future transactions must be conducted through its original shareholders and labeled a CR12 document, which lists different shareholders, as fraudulent and improperly acquired.
Directline has decided to halt its insurance operations and stated that, effective September 10, 2024, its shareholders have resolved to stop issuing policies and conducting insurance business.
The company has instructed the Association of Kenya Insurance Companies (AKI) to refrain from issuing any insurance certificates or stickers in Directline Assurance’s name from that date.
The notice continues, stating, “The company is no longer regulated by the Insurance Regulatory Authority in accordance with the Insurance Act Cap 487. All banks dealing with Directline Assurance are advised that the current CR12 is fraudulent and does not accurately represent the company’s actual shareholding or directorship.”
Directline further declares that transactions not authorized by the genuine shareholders—Royal Credit Limited, S.K. Macharia, and Mrs. Macharia—are prohibited.
The company accuses the Insurance Regulatory Authority (IRA) of allowing the fraudulent CR12 to be used, despite being aware of the fraud since 2005. This fraudulent document has misled courts into making decisions harmful to the real shareholders.
Directline asserts that the individuals or entities listed in the fraudulent CR12 are neither shareholders nor directors of the company.
They are held responsible for employing individuals in the company’s name and for the misappropriation of funds and assets totaling over Ksh.7 billion, including Ksh.2.3 billion paid to Actis, a UK-based company, in violation of Section 71 of the Insurance Act.
