Sahara India Life Insurance can no longer procure fresh business from policyholders. In the latest order, IRDAI has directed the life insurer to stop collecting new business premium with immediate effect.
The circular stated, “In terms of Section 52 B (2) of the Insurance Act, 1938, the IRDAI hereby, directs Sahara India Life Insurance Co. Ltd, not to procure/collect proposal deposits/underwrite new business, with immediate effect.”
However, Sahara India can continue to collect renewal premium and service their existing policyholders, the insurance regulator added.
The insurance regulator has directed the company to disclose this information at all prominent places to reach out to policyholders and other stake holders. It stated, “Sahara India Life Insurance Co. Ltd, shall arrange to host this order on their website prominently and also arrange to paste a copy of the operative portion of this order in a conspicuous place at each of its branches and offices and the offices of its corporate agents and any other Intermediaries immediately.”
Last week, IRDAI took over the management of Sahara India Life Insurance, as the insurance regulator believes that the company is not acting in the interests of its policyholders. It appointed R.K. Sharma, general manager, IRDAI, as a run-off administrator to manage the day-to-day affairs of the life insurer and improve its performance.