SBI Life to Take Over Sahara India’s Life Insurance Business
In a recent decision, the Insurance Regulatory and Development Authority of India (IRDAI) has decided to transfer Sahara India’s life insurance business to SBI Life. This decision came after the company failed to comply with the regulator’s instructions. According to IRDAI, SBI Life will immediately take over the responsibility of nearly 200,000 policyholders of Sahara India’s life insurance company (SILIC).
Sahara India was granted a registration certificate to enter the life insurance business in 2004. However, in 2017, the regulator appointed an administrator to oversee the company’s business due to serious concerns regarding its financial health and corporate governance. At that time, SILIC was also not allowed to underwrite new business.
IRDAI stated that despite providing enough time and opportunities to comply with the regulator’s instructions, SILIC failed to take any positive steps to protect its policyholders’ interests. Furthermore, the company’s portfolio has been witnessing an increasing trend of run-offs, indicating a deteriorating financial position.
The regulator warned that if this trend continued, SILIC’s financial situation would worsen, and it would not be able to fulfill its policyholders’ obligations. Therefore, IRDAI decided to transfer SILIC’s life insurance business to SBI Life to protect the interests of its policyholders.
IRDAI has instructed SBI Life to take adequate steps to reach out to the policyholders and resolve their queries. The regulator has also assured that it will continue to monitor the situation and issue necessary guidelines to safeguard the policyholders’ interests.
In conclusion, the transfer of Sahara India’s life insurance business to SBI Life is expected to benefit the policyholders and provide them with better services and financial security.
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