MUMBAI: Insurance regulator Irdai has asked SBI Life Insurance to acquire the defunct Sahara Life business that includes 2 lakh policies and the policyholders’ assets.
Acommittee comprising Irdai members has been set up for a swift and smooth transition. The regulator has asked SBI Life to assist Sahara Life policyholders. SBI Life will also put important information online.
Sahara Life was given licence to sell life insurance in 2004. But there were major problems with its promoters and capital management. The regulator had to step in and prevent it from selling new policies in 2017.
In 2021, Irdai said that Sahara Life’s owners were not ‘fit and proper’ to run the business and asked the company to develop a new revival plan. This happened after Sahara Life appealed against a previous order to transfer their business to ICICI Prudential Life Insurance.
Responding to the order,Sahara Life said in a statement that Irdai had earlier, in 2017, ordered the transfer of Sahara Life Insurance business to ICICI Prudential Life Insurance. The Securities Appellate Tribunal (SAT) had on July 28, 2017 overturned this decision. “Similarly, today, the Irdai has once again ordered the transfer of Sahara Life Insurance business, this time to SBI Life. However, it is important to note that this matter is currently under judicial consideration with the SAT, and the next hearing is scheduled for June 6,” it said.
Acommittee comprising Irdai members has been set up for a swift and smooth transition. The regulator has asked SBI Life to assist Sahara Life policyholders. SBI Life will also put important information online.
Sahara Life was given licence to sell life insurance in 2004. But there were major problems with its promoters and capital management. The regulator had to step in and prevent it from selling new policies in 2017.
In 2021, Irdai said that Sahara Life’s owners were not ‘fit and proper’ to run the business and asked the company to develop a new revival plan. This happened after Sahara Life appealed against a previous order to transfer their business to ICICI Prudential Life Insurance.
Responding to the order,Sahara Life said in a statement that Irdai had earlier, in 2017, ordered the transfer of Sahara Life Insurance business to ICICI Prudential Life Insurance. The Securities Appellate Tribunal (SAT) had on July 28, 2017 overturned this decision. “Similarly, today, the Irdai has once again ordered the transfer of Sahara Life Insurance business, this time to SBI Life. However, it is important to note that this matter is currently under judicial consideration with the SAT, and the next hearing is scheduled for June 6,” it said.