LSK raises concerns over closure of Directline Assurance company » Capital News

NAIROBI, Kenya, June 11- The Law Society of Kenya (LSK) has raised concerns over the closure of Directline Assurance company, saying it brings up legal and ethical questions especially with Public Service Vehicles (PSVs)operating under it.

According to the society’s presidentFaith Odhiambo, the termination of workers’ contracts without notice goes against the employment act.

Ohiambo further stated that the termination of insurance services and without prior notice or procedure goes against the insurance Act.

“The proposed immediate termination of employees without due process or consideration of their rights is a clear violation of the Employment Act,” she said. “Employees are entitled to proper notice, compensation and benefits as stipulated under the law.”

According to Odhiambo, the cessation of all insurance services could negatively affect many Kenyans, policyholders and the transport sector.

“The suspension of all insurance services by Directline Assurance company could leave many policyholders and the transport sector in disarray, this abrupt disruption can lead to significant economic and social consequences, affecting the livelihoods of many Kenyans,” she highlighted.

She noted that even though the Insurance Regulatory Authority (IRA) dismissed the closure, it should find out what challenges the assurance company is facing.

She urged several stakeholders to work together to facilitate a quick resolution of challenges facing the company.

“We will be reaching out to IRA to find out the measures that they are undertaking as well as the ministry because a situation like this brings a whole crisis to the entire industry,” she stated.

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