IRDAI has decided to hand over the life insurance business of Sahara India to SBI Life. The insurance regulator has said in a statement that this decision has been taken in the interest of the policyholders due to failure to comply with the guidelines given to Sahara India.
New Delhi. Insurance regulator Irdai (IRDAI) said on Friday, 02 June that the life insurance business of Sahara India will now be handed over to SBI Life. It is being told that due to non-compliance of instructions given by IRDAI to Sahara India Life Insurance Company, it has been decided to hand it over to SBI Life.
The insurance regulator has asked SBI to take adequate steps to reach out to policyholders of Sahara as well as issue a separate helpline to resolve their problems. IRDAI says that it will continue to monitor the situation going forward.
Why is it being handed over to SBI?
IRDAI said in a statement that Sahara India was given sufficient time and opportunity to comply with the directions but the company failed to take any positive steps to comply with the authority’s directions and protect the interests of its policyholders. Has not been. Moreover, the policy data of Sahara India Life Insurance shows that the trend of run-off in the company’s portfolio is increasing. Due to this the loss of the company is increasing and the financial condition is getting worse.
Action is necessary to protect the interests of policyholders
IRDAI has said in its statement that if this trend of Sahara India Life Insurance is allowed to continue, the situation may worsen. This will reduce the capital and the company will not be able to meet its liabilities towards the policyholders. This will put the interests of the policyholders at risk. That’s why action is necessary to protect their interests. In such a situation, IRDAI in its meeting has decided to immediately transfer the life insurance business of Sahara India to another insurance company.
2 lakh policies will be transferred immediately
In a statement, IRDAI said that the liabilities of about 2 lakh policies of Sahara India Life Insurance will be transferred to SBI Life with immediate effect. Please tell that in the year 2004, Sahara India Life Insurance was given the registration certificate for life insurance business. Then in 2017, IRDAI appointed an administrator to look after the business of the company in view of serious matters related to its financial health and corporate governance.
