UIC was placed under statutory management in 2005 following financial woes which led to its inability to settle claims of up to Sh2 billion.
The board has been given the mandate put in place operational structures and see firm lifted from statutory management in the given period.
The board will among other things establish a framework for the process of matching the assets with existing liabilities of the company with a view to eventually settle claims.
Speaking during the commissioning of the board, IRA chief executive Sammy Makove called on the members of the board to expedite the process of transitioning so as to facilitate its payments of claims to policy holders and beneficiaries.
“I urge you to expedite the process to facilitate settlement of genuine outstanding claims. It is important that you understand the magnitude of the work ahead of you and work towards the bigger picture. We are hopeful that this company will be effectively transitioned from statutory management,” Makove told the six members of the board.
Three of them are appointed by the CEO while the other three, are appointed by shareholders of UIC.
The appointment of the caretaker board is as per court orders granted on last month following an application by the IRA.
Makove made the application after ascertaining that UIC had assets that could offset its liabilities.
The latter move was motivated by the desire to protect the policy holders and insurance beneficiaries who are owed monies by the company.
This is the first time that a caretaker board is being appointed to provide oversight for a company that is still under statutory management.