Embattled firm Xplico Insurance is staring at liquidation after a new petition was filed seeking the insurer’s liquidation.
The petition was presented to the High Court on May 15 by Paul Gichovi Njeru, Angeline Mbithe Mulumba and 105 others. The petition will be heard by the High Court on July 24, 2023.
“…any creditor or interested party or contributory of the said company desirous to support or oppose the making of an order on the said petition may appear at the time of hearing in person or by his advocate for that purpose and a copy of the petition will be furnished by the undersigned to any creditor or contributory of the said company,” a legal notice dated 20th June, 2023, confirmed.
The company has in recent years been inundated with complaints from customers as well as regulatory breaches. In April last year, a creditor of Xplico Insurance moved to court seeking to have the firm wound up.
Dorice Mwaka Mwakwekwe filed her petition on March 17, 2022. It was gazetted on Friday, April 22, and creditors invited to support or oppose the petition.
The deteriorating situation at the insurer has seen Xplico lose many of its customers. Its market share in the public service vehicle (PSV) segment shrunk to 7.5% from 21.9%, within the space of a year, by September 2021.
The biggest gainer from its woes was The biggest gainer of the slump at Xplico was Directline insurance, which grew its control of the PSV insurance market with over 69% market share.
Insurance Regulatory Authority (IRA) disclosures in January 2023 also revealed that, in the year ended December 2021, Xplico Insurance Company was fined Ksh18.9 million for breaching regulations on submission of unaudited accounts, submission of premium levy and handing in monthly summaries of claims returns.