Listen to this article
The Securities Appellate Tribunal (SAT) has stayed IRDAI order in which the insurance regulator had directed Sahara Life to transfer its business to SBI Life.
SAT said that it could not find any reason behind urgency in transferring the policies when the initial order was passed in 2017. It said, “The earlier direction of the respondent in transferring the business to ICICI Prudential Life Insurance Company was set aside in 2018 and since then no steps had been taken to transfer the policies, we find it strange that such steps have been taken after a gap of 5 years and that too without granting an opportunity of hearing. We find that there was no tearing urgency in transferring the policies when the respondent had earlier directed by its order dated June 23, 2017 to service existing policy holders and collect renewal premium was still continuing.”
Further, SAT has given Sahara Life three weeks’ time to file a reply through rejoinder. The matter will be heard again on August 3.
In a communication sent to Cafemutual, Sahara Life said, “SILICL is taking all possible actions as per applicable law to ensure that the best interest of its policy holders are secured.”
In 2017, IRDAI had 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.