In the latter part of the 1990’s the insurance industry witnessed the collapse of some insurance companies. It affected the image of the industry because policyholders did not receive compensation due to the absence of a contingency Fund.
The National insurance Commission in collaboration with the then insurance industry agreed to establish the Client Rescue Fund following the passage of the Insurance Act, 2006 Act 724.
The Fund is to be used to compensate clients of insurance companies declared bankrupt.