The admission of “serious” lapses by the management of Sahara India Life Insurance has forced the insurance regulator to take over the administration of the insurer.
The Insurance Regulatory and Development Authority of India (IRDAI), on Monday, named RK Sharma, General Manager, IRDAI, as administrator to manage the affairs of the insurer with immediate effect. The move came after the admission of “serious” lapses by a team of the company led by its CEO Sanjay Agarwal, said an official of IRDAI.
It was not a one-day decision and there was a long correspondence with the company after the authority had observed “serious” concerns as regards governance aspects, and declining business and financial position of the insurer for the year ended March 31, 2015. The regulator observed a continued decline in the company’s performance with new and renewal businesses falling year-on-year. There was also significant increase in certain items under current assets during the year.
