NAIROBI, Kenya- In a dramatic turn of events, Directline Assurance has announced the immediate termination of its insurance business.
The company cited ongoing shareholder disputes and the circulation of fraudulent documents as the primary reasons for the abrupt closure. Any future transactions, according to the company, must go through its original shareholders.
At the core of Directline’s decision is a fraudulent CR12 document, a certificate purporting to list shareholders.
The company claims this document is “fake and obtained through the backdoor.” In a public notice, Directline emphasized that its only legitimate shareholders are Royal Credit Limited, S.K. Macharia, and Mrs. Macharia.
The company also accused the Insurance Regulatory Authority (IRA) of knowingly permitting the circulation of the fraudulent CR12, a problem that, according to Directline, dates back to 2005.
The fraudulent CR12 has allegedly been used to mislead courts into making rulings that favor the fake shareholders, placing the company’s real owners at a disadvantage.
This has led Directline to cease its insurance operations, further requesting that the Association of Kenya Insurance Companies (AKI) stop issuing insurance certificates or stickers under the company’s name.
Directline’s exit from the insurance sector marks the end of its two-decade-long presence in the market.
The company is no longer under the regulation of the Insurance Regulatory Authority (IRA), as noted in their public statement. Directline’s notice also warned banks against conducting any transactions not authorized by its real shareholders.
Moreover, the fraudulent CR12, according to the company, has allowed individuals not affiliated with Directline to wrongfully control company assets worth over KSh 7 billion, of which KSh 2.3 billion was allegedly paid to UK-based firm Actis.
The notice made it clear that the listed individuals in the fake CR12 are not only unauthorized but also liable for any company transactions and employee-related matters during their illegitimate involvement.
As Directline Assurance closes its doors to the insurance industry, it remains to be seen how this saga will unfold for both its employees and policyholders.
The company’s accusations against the IRA and those allegedly behind the fraudulent CR12 suggest that legal battles could be on the horizon. In the meantime, the insurance sector and affected stakeholders are left grappling with the fallout from this abrupt shutdown.
