CONCORD Insurance has announced a one year suspension on the settlement of outstanding payments to policyholders and other creditors.
Concord was last week placed under statutory management due to financial difficulties. This is after it caught the Insurance Regulatory Authority's attention for failure to furnish it with its quarterly accounts as per the Insurance Act.
IRA further said Concord failed to pay industry levies to the government forcing a statutory takeover to assess the problems and books of the firm.
"In exercise of the powers conferred by section 67C(2) (10) of the Insurance Act, the statutory manager hereby declares a moratorium on the payments by the said insurer to its policy holders and all other creditors for a period of twelve months with effect from the date of this notice," read an advertisement by statutory manager Charles Osoro published yesterday.
Other firms that have recently been placed under statutory management such as Blue Shield Insurance and Standard Assurance are yet to come out of that status several months later. A moratorium period can be extended if a statutory manager files an application in court to ask for more time.