In re Concord Insurance Company Limited [2019] KEHC 12418 (KLR)

Facts

Concord Insurance Company Limited was placed under statutory management due to inability to revive the company. The Commissioner declared a moratorium on the payment by the insurer to policy holders and other creditors. The company is now seeking to expand the moratorium to include third party claimants and stay all legal proceedings against current policyholders.

Issues

1. Scope of the moratorium issued by the Commissioner
2. Whether the moratorium extends to third party claimants

Reasoning

The moratorium declared by the Commissioner under section 67C(10) of the Insurance Act is intended to protect the insurer from payments to policy holders and other creditors, not necessarily to policy holders or other creditors against liability from third parties. The decision by Gikonyo J. in the matter involving the Company is binding and the application is an abuse of the court process.

Outcome

Application dismissed

Authorities cited