Directline has faced major challenges recently, including regulatory scrutiny and operational changes that have only exacerbated service issues.
Directline, once a leading provider of motor insurance for Public Service Vehicles (PSVs), has been embroiled in scandals and financial mismanagement.
As of 2024, the Insurance Regulatory Authority (IRA) has intervened several times due to alleged misuse of funds by Directline’s directors, amounting to Ksh 7 billion.
This has led to a freezing of their bank accounts, affecting their ability to process claims and issue new policies.
This financial instability could explain the major delays and lack of accountability you’re experiencing.
Furthermore, it’s been reported that Directline stopped issuing new insurance services in September 2024 due to internal conflicts and fraud-related issues involving counterfeit documents used by individuals posing as shareholders.
This confusion has created additional operational hurdles, which might be contributing to the delays in resolving claims.
Despite the challenges faced by Directline, the company remains under close supervision by the IRA, and they are expected to honor all existing insurance policies.
However, many customers, are left in limbo, with no clear resolution or communication from the company.
The arrogance and unresponsiveness encountered from staff are symptoms of a larger systemic issue within the organization, which has been struggling with governance and accountability.
It is crucial for customers to continue documenting these interactions and, if necessary, raise the matter to the IRA for intervention.
It may help to consult legal counsel or consumer protection organizations like the Consumers Federation of Kenya (COFEK), which have been vocal about the ongoing issues at Directline.
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