The IRDAI order stated that SILIC and its promoters and shareholders shall transfer all records of its policyholders to SBI Life within 21 working days from the date of the order.
The SBI Life Insurance Company will be taking over around 2 lakh policy liabilities and assets of the Sahara India Life Insurance Co. Ltd (SILIC), the Insurance Regulatory and Development Authority of India (IRDAI) said.
According to the regulator, the decision has been taken in view of the “continuous deterioration of the financial position of SILIC” and to protect the general interest of the holders of the company’s policies.
When will SBI Life take over Sahara India’s insurance business?
The IRDAI has ordered the transfer of the life insurance business of SILIC to SBI Life with immediate effect. “After due consideration of all surrounding facts and circumstances, the Authority has decided that the life insurance business of SILIC is to be transferred to another suitable life insurer with immediate effect. The Authority has identified SBI Life Insurance Company Ltd., as the acquirer insurer for the transfer of the life insurance business of SILIC,” the IRDAI order dated June 2 read.
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The order stated that SILIC and its promoters and shareholders shall transfer all records of its policyholders to SBI Life within 21 working days from the date of the order. This means that around 2 lakh policyholder liabilities and assets of SILIC will be transferred to SBI Life before July.
Is Sahara India barred from insurance business?
The IRDAI, in its order, said that the administrator appointed for Sahara India Life Insurance has recommended that SILIC should not be allowed to carry on business. The Administrator also recommended that SILIC “may be advised to stop underwriting new business with immediate effect” and the existing business shall be transferred to SBI Life. The IRDAI—appointed Administrator also said that till the transfer is complete, SILIC be allowed to receive renewal premium and service its existing customers
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Who currently owns Sahara India Life Insurance?
Sahara India was given the licence to carry out insurance business in February 2004. As of March 31, 2023, Sahara India Financial Corporation Limited (SIFCL) owns 50% shares of SILIC while Sahara Care Limited (SCL) has 40% stake in it.
Why is SBI Life taking over Sahara India’s insurance business?
As per the IRDAI order, the administrator noted that the promoters of SILIC “were no more ‘fit and proper’”, and the shareholders and Board of Directors were not “keen on a recovery plan”. The administrator also flagged that Rs 78.15 crore had been diverted by SILIC in the name of security deposits and underlined that the company was “mainly surviving on the release of reserves”. It was also noted that the affairs of SILIC were managed by the non-executive chairman and not by the board.
