Troubled insurance company that offers covers to public utility vehicles, Invesco Assurance Company, has been placed under liquidation after it failed to pay claims totalling millions of shillings. In response to the High Court decision, the industry regulator issued a notice on Friday ordering the insurer to immediately cease signing new insurance contracts.

“Invesco Assurance Company has been placed under liquidation through a decree of the court dated 6th February 2023 issued in the High Court at Nairobi in Insolvency Petition No. E155 of 2019,” said Godfrey Kiptum, Insurance Regulatory Authority (IRA) commissioner of insurance and chief executive.

“Following this court decree, Invesco Assurance Company is stopped from issuing insurance policies and therefore not authorised to enter into any new contracts of insurance.” Invesco was the subject of an Insolvency Petition filed by Kinyanjui & Company Attorneys in July 2019 that sought, among other directions, the insurer’s liquidation to pay off debts of more than Sh29 million.

Financial troubles

No progress was made in paying off the debts despite the High Court delaying its final directions in the ruling on the insurer’s case.The insurer’s financial troubles were also brought up in a different court case where the company was contesting a ruling requiring it to pay Sh53.28 million to 60 people injured in traffic accidents.

The official receiver has also been named as the provisional liquidator by the High Court. Concord Insurance Company Limited, Standard Assurance Kenya Limited, and Invesco are all in the process of being liquidated. According to section 179 of the Insurance Act, the affected claimants will receive compensation from the Policyholders Compensation Fund.