Policy holders with Esich Life Assurance should expect to receive some part payment of their claims from next month on wards, the regulator for the Insurance sector, the National Insurance Commission (NIC) has said.
The NIC in October last year, moved in to get customers of Esich Life Assurance access their insurance claims, but only managed to get an administrator assigned to take-over the running of the company in February this year.
In an interview with Citi Business News on the fate of customers of Esich Life Assurance, the Head of Supervision at the NIC, Seth Eshun revealed that stakeholders in the insurance industry have pooled to help in settling the claims of affected customers.
“Basically. the insurance industry has what is described as a client rescue fund which has a purpose of ensuring that when an insurance company is in distress, some level of compensation is paid to policy holders. What we have started is to go into that fund and ensure each policy holder is paid something. This is not like a state bailout,” he said.
In 2018, the National Insurance Commission (NIC) approved a takeover of Esich Life Assurance by a foreign company.
The decision was taken due to the company’s inability to solve liquidity challenges it was facing, which also affected the payment of claims to clients.
The troubles of Esich Life Assurance have been lingering for over a year now.
The company, continually convinced its customers that its processes are intact, following increased cases of panic withdrawal among the public.
