On Friday, June 2, the Insurance Regulatory and Development Authority of India (IRDAI) made the decision to transfer Sahara India’s life insurance business to SBI Life. This move comes after IRDAI had previously issued multiple directives to Sahara India Life Insurance Company (SILIC), which the company failed to comply with. As a result, IRDAI has now determined that the life insurance business should be handed over to SBI Life.
On Friday, June 2, the Insurance Regulatory and Development Authority of India (IRDAI) announced the immediate transfer of approximately 2 lakh policies from Sahara India Life Insurance to SBI Life. IRDAI had previously issued multiple directives to Sahara India Life Insurance Company (SILIC), which were not adhered to. As a result, IRDAI has now decided to transfer the life insurance business to SBI Life. According to a statement by IRDAI, the liabilities of around 2 lakh policies from Sahara India Life Insurance will be transferred to SBI Life without any delay.
Sahara India Life Insurance received a registration certificate in 2004 to commence its life insurance operations. However, in 2017, serious concerns arose regarding the company’s financial stability and corporate governance, prompting the insurance regulator to appoint an administrator to oversee its activities. During this period, SILIC was also prohibited from underwriting new business.
In a statement, IRDAI expressed, “Despite providing ample opportunities and time for compliance, SILIC has failed to adhere to our directives and neglected to take any proactive measures to safeguard the interests of its policyholders. Furthermore, the company’s policy data reveals a growing trend of policy run-offs within its portfolio. With increasing losses and a high percentage of claims relative to total premiums, the financial condition of the company is deteriorating.”