The High Court in Blantyre has issued an order varying an injunction obtained by Prime Insurance Limited against the Reserve Bank of Malawi (RBM) which took over the administration of the company which is apparently near insolvency.<\/p>\n
The insurance company blocked the RBM\u2019s takeover barely a day after registrar of financial institutions, Charles Chuka, had announced that he was putting the company under the central bank\u2019s administration so as to recapitalise it.<\/p>\n
Prime Insurance Company Limited and one Goss Katoki Mwalilino obtained the injunction on the premise that Chuka or the central bank itself has no jurisdiction to conduct statutory management in the manner they did.<\/p>\n
But High Court judge Kenyatta Nyirenda has varied the interlocutory injunction which he granted the applicant and has further restricted Prime Insurance Limited\u2019s withdrawals from its bank accounts to sums required to cover its day-to-day operations which include servicing its clients.<\/p>\n
\u201cThe Applicants by themselves, agents, directors, employees or whomsoever acting on their behalf are restricted from disposing any of the assets of [Prime Insurance Company] until the determination of the application for stay of injunction or determination of the matter herein,\u201d reads part of the order.<\/p>\n
It further restrains the applicants from performing any action \u201cthat shall be tantamount to stripping off, transfer, pledge, mortgage, change or in any way cause to be encumbered\u201d any of the assets belonging to Prime Insurance until the application for stay of injunction is made.<\/p>\n
When he announced the central bank\u2019s takeover of Prime Insurance, Chuka said the decision had been reached at after months of monitoring the company\u2019s financial records amid reports that it was failing to honour claims made by its clients.<\/p>\n
He said the insurance company \u201cis in gross breach of the financial services laws as management and shareholders of the institution have failed to address a number of issues that potentially threaten the interests of policyholders and the general public\u201d.<\/p>\n
\u201cThe general public is advised not to transact insurance business with any employee, agent or shareholder of Prime Insurance Company. The general public is further advised that during the period of statutory management, no new business or insurance policy renewals will be accepted by the Company,\u201d reads part of the announcement posted on RBM website.<\/p>\n
Meanwhile, the parties concerned have been asked to appear before Judge Nyirenda on June 16 over the matter<\/p>\n","protected":false},"excerpt":{"rendered":"
The High Court in Blantyre has issued an order varying an injunction obtained by Prime Insurance Limited against the Reserve Bank of Malawi (RBM) which took over the administration of the company which is apparently near insolvency. The insurance company blocked the RBM\u2019s takeover barely a day after registrar of financial institutions, Charles Chuka, had […]<\/p>\n","protected":false},"author":3,"featured_media":26084,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-26080","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/posts\/26080","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/comments?post=26080"}],"version-history":[{"count":1,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/posts\/26080\/revisions"}],"predecessor-version":[{"id":26085,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/posts\/26080\/revisions\/26085"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/media\/26084"}],"wp:attachment":[{"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/media?parent=26080"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/categories?post=26080"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/tags?post=26080"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}