Judge Kenyatta blocks Reserve Bank of Malawi from taking over Prime Insurance

The High Court in Blantyre has blocked the Reserve Bank of Malawi (RBM) from taking  over management of a local insurance company, Prime Insurance Limited.

Charles Chuka  governor of Reserve Bank  -Announced take over of Prime Insuarance

Charles Chuka governor of Reserve Bank -Announced take over of Prime Insuarance

At a news conference on Friday in Lilongwe, RBM announced it was putting the insurance company under its administration to recapitalise it or risk being declared insolvent.

Chuka said central bank’s decision follows months of monitoring of the insurance firm’s financial records and negotiations amid reports of failure by the company to honour claims by clients.

But Prime Insurance  through  lawyer Patrick Mpaka sought court relief  which Judge Kenyatta Nyirenda granted an injunction the central bank or its governor Charles Chuka, who is also registrar of financial institutions, from proceeding with the purported statutory management.

Reads  an order for leave to move for judicial reviewr: “It is hereby ordered and directed… that an order be and is hereby made staying the decision of the respondent [RBM] comprised in the letter dated 3rd June 2016 being the decision to purportedly place 1st applicant [Prime Insurance] under statutory management on alleged grounds that 1st applicant is or is likely to be in an unsound financial position contrary to Section 68[2][a][i] of the Financial Services Act.”

Meanwhile, Prime Insurance goes back to business as normal, according to lawyer Mpaka.

Prime Insurance Company was licensed in 1991 to conduct general insurance business but over the years, grew more into the motor vehicle insurance portfolio, particularly minibuses.

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2 thoughts on “Judge Kenyatta blocks Reserve Bank of Malawi from taking over Prime Insurance”

  1. john says:

    WHAT IS WRONG WITH THIS JUDGE CALLED KENYATTA NYIRENDA? AFTER HANDING OVER THE PRESIDENCY TO PETER MUTHARIKA ON A SILVER PLATTER, NOW HE IS SIDING WITH PRIME INSURANCE. GOSH!!

    RBM CAN NOT JUST WAKE UP ONE MORNING AND SHUT A COMPANY LIKE PRIME INSURANCE JUST LIKE THAT. ASK ME I HAVE BEEN HONOURING MY PREMIUMS SINCE 2008 AND WAS ONLY INVLOVED IN AN ACCIDENT LAST YEAR 2015. I TOILED TO HAVE MY INSURANCE COVER PAID TOME AFTER MONTHS OF FIGHTING WITH THIS COMPANY.

    I THINK BINGU WAS RIGHT THAT THIS IS A COUNTRY ON INJUNCTIONS WHERE AS I SPEAK SOME INDIANS OBTAINED AN INJUNCTIONS STOPPING BLANTYRE CITY FROM DEMOLISHING VERY OLD AND DANGEROUS STRUCTURES.

    THISCAN ONLY HAPPEN IN MALAWI.

  2. Chikopa says:

    Reserve Bank of Malawi does not learn. Forex Bureaus won the case and are being compensated millions of Kwachas. Finance Bank also won the case against them. I am not sure with Citizen Insurance. Did Chuka and his boys make a thorough homework?

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