Royal Media Services owner Samuel Kamau Macharia, popularly known as SK Macharia, has warned passengers against boarding vehicles covered by Directline Assurance company.
Speaking to the press at the Milimani Law Courts, Macharia’s lawyer Danstan Omari warned individuals against boarding any vehicles covered by the company, saying the insurance premiums funds were mismanaged.
“Whoever boards a vehicle with the Directline sticker should do so at their own risk. You are on your own if an accident were to happen. The premium money was mismanaged by individuals who bought houses and cars,” Omari said.
Directline Assurance officially stopped conducting insurance business on September 10, 2024.
Macharia moved to court in protest over the current Directline management which was allegedly using illegal CR12 documents. SK Macharia is challenging what he calls fraudulent takeover of his company by shareholders.
“It has come to our attention of original, legal shareholders that the company’s CR12 has been illegally and fraudulently altered. Shares have been transferred contrary to insurance act. We have been instructed to fight against this illegality. Investigations have concluded that the CR12 being used by Direct line insurance is an illegal fraudulent CR12,” another lawyer representing Macharia added.
CR12 is an official confirmation by the registrar of companies in Kenya indicating that they the directors or shareholders of a company. It also confirms that the company’s records exist at the company registry.
Omari disclosed that the Ksh8 billion funds that were collected in premiums were mishandled, therefore those boarding vehicles with Directline Assurance stickers are risking their safety.
The lawyer added that apart from the fraudulent directors currently running Directline, Macharia is also suing the Central Bank of Kenya and the Insurance Regulatory Authority (IRA) for failing to iron out the Directline management issue.
Troubles at Directline
In a statement on June 10, 2024, Directline announced its decision to halt operations. The board of directors was also dissolved.
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Omari disclosed that Macharia and his wife started Directline but an inside tussle saw them announce the closure of the business.
“The company was fraudulently transferred to people who are not investors. They have never put seed capital in that company. Macharia was barred from accessing the offices,” Omari said.
Macharia accused the Insurance Regulatory Authority (IRA) of failing to act against the directors of Directline, who he alleged misused Ksh7 billion belonging to the company.
Directline was a popular company offering insurance for Kenyans across different sectors, including public service vehicles and boda boda riders.
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It was praised for its accessibility and penetration into the Kenyan society, where many people are not insured.
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