Sahara India Life Insurance Company Limited (SILIC) will transfer its business to SBI Life Insurance Company Limited, as directed by the insurance regulator of India. Around 2 lakh policy liabilities of SILIC will be transferred to SBI Life with immediate effect. The regulator appointed an administrator to manage the business in 2017 due to financial ownership and administration issues. SILIC failed to comply with authority’s directions and take necessary steps to protect the interests of policyholders, resulting in the transfer of business. SILIC’s portfolio is showing a run-off trend, with a higher percentage of claims and increasing losses, which can lead to erosion of capital and inability to discharge liabilities. SBI Life is directed to set up a cell to resolve queries of SILIC and reach out to policyholders regarding servicing of policies. The regulator has formed a committee to ensure a smooth transition and will continue to monitor the situation, issuing necessary guidelines in the interest of policyholders.
Key Takeaways:
– SILIC’s business will be transferred to SBI Life Insurance Company Limited.
– The insurance regulator appointed an administrator to manage SILIC’s business in 2017 due to financial ownership and administration issues.
– SILIC failed to comply with authority’s directions and take necessary steps to protect policyholders’ interests.
– SBI Life is directed to resolve queries of SILIC and reach out to policyholders regarding servicing of policies.
– The regulator has formed a committee to ensure a smooth transition, issuing necessary guidelines in the interest of policyholders.
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