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IRDAI has handed over the life insurance business of Sahara Life Insurance to SBI Life Insurance.
Sharing the rationale, IRDAI said that it has decided to transfer the business to SBI Life after providing ample time and several opportunities to Sahara Life to rectify the state of affairs.
In 2017, IRDAI directed Sahara Life to stop collecting new business premium. The insurance regulator reviewed the performance of Sahara Life and found issues with its governance aspects, business performance, adjustments against revaluation reserves and unclaimed insurance amounts.
IRDAI said, “After due consideration of all surrounding facts and circumstances, the authority has decided that the life insurance business of Sahara Life is to be transferred to another suitable life insurer with immediate effect. The authority has identified SBI Life Insurance as the acquirer insurer of the transfer of the life insurance business of Sahara Life.”
Here are some key things:
- SBI Life will have to maintain confidentiality of the policyholders
- The acquisition has to be completed within one year
- Take steps to comply with KYC and Anti Money Laundering guidelines
- Intimating policyholders about this takeover
- FAQ and dedicated email id have to be created to address queries and concerns of policyholders