The Policyholders Compensation Fund (PCF) is a State Corporation under the The National Treasury that was established through the Legal Notice No.105 of 2004 and commenced its operations in January 2005.

The Fund was established for the primary purpose of providing compensation to claimants of an insurer that has been put under Statutory Management and for the secondary purpose of increasing the general public’s confidence in the insurance sector. The decision to establish the Fund was informed by the collapse of several Insurance companies prior to the year 2005. The Fund is governed by section 179 of the Insurance Act (Cap 487) and the Insurance (Policyholders Compensation Fund) (Amendment) Regulations, 2014.