PIA close down two Insurance Companies

The Pensions and Insurance Authority (PIA) has with immediate effect closed down two insurance companies due to insolvency and has since placed them under compulsory liquidation.

The insurance companies which have since been placed under compulsory liquidation are Focus Life Assurance Limited and A Plus Assurance Limited.

This follows consideration of statement of affairs of the assets and liabilities of both insurance companies, which revealed that both entities were insolvent.

PIA Communications Manager Doreen Kambanganji tells QTV News that the compulsory liquidation is in accordance with the relevant provisions of the Insurance Act No. 27 of 1997 (as Amended by Act no. 26 of 2005) as read with Chapter VII of the Banking and Financial Services Act, CAP 387.

Ms Kambanganji says this is also in exercise of the powers contained in Section 71 of the Insurance Act as read with Section 101 of the Banking and Financial Services Act.

She says stakeholders in the two companies have been given 30 days in which to file in any objection to the action taken by the Authority.

She has since called on members of the public to only acquire insurance products and services to licensed insurance companies.