Compensation shall only be provided under the Act and the Regulations subject to the following conditions:
1. When an authorised insurance company that issued a Kenyan policy or policies has become insolvent. For purposes of these Regulations, an authorised insurance company shall be considered to be insolvent if—
(a) it is wound up by the Court under section 219 of the Companies Act;
(b) it does not meet the solvency requirements prescribed in section 41 of the Act;
(c) in the case of an insurance company carrying on general business, where a resolution for voluntary winding up is made in a meeting of creditors under section 286 of the Companies Act; or
(d) it is wound up by the court at the instance of the Commissioner of Insurance under section 123 of the Act.
2. The right of any policyholder to compensation shall be subject to compliance of the policyholder with any conditions, relating to the total or partial assignment of the policyholders rights under or in respect of the relevant Kenyan policy, imposed by the Board, including—
(a) any rights a policyholder may have in respect of any payments made by the policyholder to the insolvent insurance company as premiums, under the policy, after the insolvency; or
(b) any rights a policyholder may have against any other person in respect of any event giving rise to any liability of the company under the relevant policy.
3. Any payment made by any person, other than the Board, to the policyholder being a payment which is related to any liability of an insolvent company to the policyholder, may, if the Board so decides, be considered as payment, in whole or in part, of the compensation payable to the policyholder under the Act and these Regulations.