Bringing some relief to Sahara Life Insurance, Securities and Appellate Tribunal (SAT) has given a week’s time to the life insurer to prove that they are fit and proper to run an insurance business in India.
Last week, IRDAI directed country largest private life insurer ICICI Prudential to take over the business of Sahara Life Insurance with effect from July 31, 2017.
However, the Sahara group approached SAT alleging that IRDAI had wrongfully given the business to ICICI Prudential Life Insurance and concluded that the promoters were no more ‘fit and proper’. The insurance regulator had alleged that the company had mis-used Rs.78 crore that they took as security deposits.
In a media report, SAT said, “The tribunal fixed the next hearing in the matter on August 7 when it will decide on the maintainability of the petition filed by Sahara Life against the IRDAI order.”
In defence against IRDAI’s decision, Sahara Group stated, “Sahara Life is doing business since 2004 and since last 7 years running continuously in profit and has been in absolute and strict compliance of all regulatory norms and directions issued by IRDAI.” It also said that Sahara Life’s assets are more than its liability and there is not a single complaint of non-payment by any policy holder.