Africa Merchant Assurance Company (Amaco) can now breath a sigh of relief after a petitioner who had moved to court to have the company wound up backed down.
Beth Kihara, the petitioner, had moved to court alongside six others seeking to have the company liquidated on accusations of failing to settle claims.
“That by consent of both parties the Statutory Demand … against Africa Merchant Assurance Company Limited herein be and is hereby marked as withdrawn with no orders to costs,” read a notice in the latest Kenya Gazette.
A recent Insurance Regulatory Authority (IRA) report revealed that Amaco closed the third quarter of 2019 with 1,649 outstanding claims, having settled only 215 during the period.
Last year, Mama Rael Medical Clinic raided Amaco offices over a Ksh15 million debt, and carried furniture from the offices. It is not yet clear how the case ended.
“This matter is giving us a headache. We will have another meeting next week Monday to agree on how the remaining Ksh14 million will be paid in installments,” said the claims manager Mr Ken Kiprop after the raid.
This is despite Amaco collecting over Ksh2.1 billion in terms of customer premiums last year, which is enough to pay such claims at a go.
Amaco reported a Ksh75 million profit in 2018 with claims dropping by five percent from Ksh1.4 billion in 2017 to Ksh1.3 billion in 2018.