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Wednesday, October 4, 2023

Irdai asks SBI Life to take over troubled Sahara business

MUMBAI: insurance regulator irdai has asked SBI Life Insurance to acquire the extinct Sahara Life business including 2 lakh policies and the assets of the policyholders.
A committee made up of Irdai members has been created for a quick and smooth transition. The regulator has asked SBI Life to assist Sahara Life policyholders. SBI Life will also put important information online.
Sahara Life obtained the license to sell life insurance in 2004. But there were major problems with its promoters and capital management. The regulator had to step in and prevent it from selling new policies in 2017.
In 2021, Irdai said the owners of Sahara Life were not “fit and proper” to run the business and asked the company to develop a new revival plan. This happened after Sahara Life appealed a previous order to transfer its business to ICICI Prudential Life Insurance.
In response to the order, Sahara Life said in a statement that Irdai had previously ordered, in 2017, the transfer of the business from Sahara Life Insurance to ICICI Prudential Life Insurance. The Stock Market Appeals Court (SAT) on July 28, 2017 revoked this decision. “Similarly, today, Irdai once again ordered the transfer of the Sahara Life Insurance business, this time to SBI Life. However, it is important to note that this matter is currently under judicial consideration with the SAT, and the next hearing is scheduled for June 6,” he said.
SBI Life said that it is not a merger between the two companies, but just a transfer of the assets and liabilities related to Sahara Life Insurance policyholders.
“This is not a merger between the two companies, but only a transfer of the assets and liabilities relating to the policyholder from Sahara Life Insurance to SBI Life Insurance Company Limited in accordance with the IRDAI order dated June 2, 2023 “, said.
Look Taking over troubled Sahara business, Irdai asks SBI Life

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