The Insurance Regulatory Authority has appointed a law firm owned by the Chairman of the Retirement Benefits Authority (RBA). Nelson Havey For her representation in a case against businessman and media owner Samuel Kamau Macharia (SK Macharia) over the alleged withdrawal of Sh400 million from Directline Assurance Company.
The Insurance Regulatory Authority (IRA) revealed that it had awarded a contract worth Sh2.9 million to Havi & Co Advocates through direct procurement on July 1 to represent it in the matter until the end of July next year. Mr Havey, a former president of the Law Society of Kenya and now chairman of the Reserve Bank of Australia, is a senior partner at the law firm.
“Provision of legal services for representation by external counsel in matters relating to Directline Assurance Limited,” the contract award paper said.
The regulator is in a legal wrangle with Mr Macharia’s company Directline Assurance as it seeks to reverse a Sh400 million payment that threatens the survival of the top insurer for public service vehicles (PSVs).
The IRA said in court papers that the insurance company had breached its license by engaging in non-insurance businesses, and that Mr Macharia had breached the law by transferring the insurance company’s assets to a third party.
After moving to court, the IRA obtained orders to freeze the funds pending resolution of the petition, arguing that the policyholders and their beneficiaries had suffered irreparable harm. The IRA said in court documents that the insurer had unpaid claims worth Sh2 billion as of April.
Direcline closed last year with total premiums of Sh3.4 billion from commercial vehicle PSV covers, giving it a 61.56 percent market share in the business category, according to IRA data.
It was closely followed by Africa Merchant Assurance (14.95%), Invesco (8.15%), Pioneer (6.71%) and GA Insurance (6%). There are only 10 insurance companies in Kenya that currently insure commercial buses and matatus.
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