The government had, at the beginning of March, released a plan to pay a total of 2,949 individuals whose money was held by Concord Insurance company after it collapsed eight years ago.
Speaking to the press, Policyholders Compensation Fund (PCF) Managing Trustee William Masita confirmed that only eight individuals applied for the money.
The beneficiaries were to receive Ksh250,000 each.
As a result of the poor turnout, Masita noted that PCF was considering extending the application deadline due to the lockdown instituted in the five counties to curb the spread of Covid-19 virus.
“The policyholders were supposed to download the forms and return (them) to us within a period of 30 days. This process has been going on but unfortunately, the take-up has not been what we expected. We have received only eight forms so we are doing additional media campaigns to ensure the returns are increased.
â€œWe are considering extending the period on the fact that there were certain restrictions given on Covid-19 containment from Friday that we had not foreseen earlier so it affects claimants who may wish to visit the office from areas beyond the five counties,” stated Masita.
PCF, a State Corporation under the National Treasury, was established for the purpose of providing compensation to policyholders of an insurer that has been put under Statutory Management.
The institution has been in operation since 2005 and insurance companies are obligated to pay a quarter of its customer policy charges to the fund.
Concord Insurance company, a commercial and motor business, failed to settle claims and was placed under statutory management in 2013.
Masita, in March 2021, confirmed that the Ksh250,000 amount payable to each claimant is meant to cushion them after years of delay.
â€œThe limit is an amount aimed at cushioning the policyholders and not necessarily the actual amount of the claims. This fund has put in place an elaborate framework to ensure the successful implementation of the compensation,â€ Masita stated.
Policyholders are expected to fill necessary forms before submitting them to PCF for verification.