The payment of Sh1.2 billion claims lodged by customers of the collapsed United Insurance has suffered a setback following a row between the statutory manager and a committee appointed to oversee the settlements.
Court filings by the settlement committee points to a frosty relationship with the statutory manager. The committee alleges that the manager has been mostly unavailable.
The settlement committee was set up in March after shareholders and the Insurance Regulatory Authority agreed on a plan to start settling the Sh1.2 billion claims, which had been pending since July 2005 when it was placed under receivership.
“The commissioner of Insurance/Insurance Regulatory Authority is at liberty if found necessary and in consultation with a majority of the committee the committee members to appoint another body corporate or person as to act as a statutory manager (or co-statutory manager) of United Insurance Company Limited other than the (policy compensation funds-PCF),” reads one of the clauses which the committee is seeking the court’s backing for.
The shareholders of the firm are Kiki Investments, Mumbu Holdings and Kiragu Holdings each with a 33.33 per cent stake.