The Policyholders Compensation Fund (PCF) has embarked on an ambitious campaign, “PCF Mtaani,” to raise awareness about its mandate and functions.

Recently, the Fund held five days of sensitisation forums in Meru County, engaging with various groups, including media, boda boda riders, matatu owners, insurance agents, and other stakeholders such as the National Government Administration Officers, business community members, and representatives from organisations like KUPPET, KNUT, women’s groups, youth associations, religious groups, and cooperatives.

The initiative, led by PCF’s Deputy Director of Corporate Communications, Rosemary Kavili, aims to enhance public understanding and confidence in the insurance sector.

“We will be traversing across all counties with a target of calling upon the public to come forward and lodge their claims for funding with PCF for those members of the public who had claims with BlueShield Insurance Company Limited (Under liquidation), United Insurance (Under liquidation), Xplico Insurance Company (Under Statutory Management) and Invesco Insurance Company (Under Statutory Management),” Kavili stated.

The forums are part of a strategic plan to increase awareness of PCF’s core role: compensating policyholders affected by the collapse or statutory management of insurance companies.

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Before 2019, compensation only began after a company was fully wound up in court, causing significant delays and leaving policyholders without recourse.

The Insurance Act amendment in 2019 allowed for compensation to start as soon as an insurer was placed under statutory management or had its licence revoked. This change was critical as it resolved the problem of lengthy court proceedings preventing timely compensation.

As of September 2024, the Fund had distributed Sh116 million in compensation to 890 claimants from insurers under statutory management and liquidation, including Resolution Insurance Company Limited, Concord Insurance Company Limited, Standard Assurance Company Limited, Blue Shield Insurance Company Limited, United Insurance Company Limited, and Xplico Insurance Company Limited.

The maximum compensation amount is currently set at Sh250,000 per claim. Kavili emphasised that the PCF serves as a safety net for policyholders and claimants when insurance firms fail, aiming to restore confidence in the sector.

“Ultimately, the sensitisation engagement forums seek to enhance the public’s understanding and knowledge about PCF which provides a last-resort protection scheme for policyholders and claimants when insurance companies collapse as well as gives confidence to insurance policyholders and claimants,” she said.

For many in Meru, the forums were long overdue. John Barasa, Meru County Bodaboda Chairman, noted that confidence in insurance companies had been eroded due to frequent collapses.

“We have known various issues concerning PCF which has made us build confidence with insurance companies. We were avoiding having any policy with them for the way they usually collapse but now with the assurance of compensation from the PCF we will do the necessary,” Barasa said.

Meru is the eighth county to host the PCF’s “PCF Mtaani” forums, part of a nationwide effort aimed at reaching all 47 counties.

This initiative reflects PCF’s commitment to building public trust and ensuring that insurance consumers are aware of their rights and the protections available to them.