ADVOKS GLOBAL · KENYA
Insurance Act
123. Application for the liquidation of insurer by the court
Edition: 2023-12-11 · In force
123. Application for the liquidation of insurer by the court
(1)The Commissioner may, with the prior approval of the Board, make an application to the court for the liquidation of the insurer in accordance with Part VI of the Insolvency Act (Cap. 53) in any of the following circumstances:(a)as provided by section 19(5) or 67(3) of this Act;(b)on the ground that the insurer is unable to pay the insurer's debts within the meaning of section 384 of the Insolvency Act (Cap. 53);for a period of six months after notice of the failure or contravention has been given to the insurer by the Commissioner;(c)on the ground that the insurer is unable to fulfil the reasonable expectations of policy-holders or potential policy-holders;(d)on the ground that it is just and equitable in the interests of the policy holders that the insurer should be wound up;(e)on the ground that the insurer has failed to pay tax that is due and outstanding;(f)on any other ground prescribed by regulations made for the purposes of this section under section 180 of this Act.(2)Subsection (1) does not apply to an insurer that is already being liquidated by the court.(3)The court may, after considering the application made by the Commissioner, order the liquidation of the insurer if it is satisfied that—(a)there are sufficient grounds for making the order; and(b)it is just and equitable for the insurer to be liquidated.(c)on the ground that the insurer—(i)having failed to comply with a requirement of this Act, has continued that-failure; or(ii)having contravened a provision of this Act, has continued that contravention.