MUMBAI: The Securities Appellate Tribunal (SAT) has stayed the order by the Insurance Regulatory and Development Authority of India (Irdai), transferring the business of Sahara India Life Insurance (SILICL) to SBI Life. This is the second time that the appellate body has stymied the regulator’s move to transfer Sahara’s business to another insurer.
In its order dated June 2, Irdai had transferred the entire business of Sahara Life to SBI Life Insurance, among certain other directions citing policyholder interest. The actions were challengedby Sahara Life before SAT.
In its order, the tribunal noted that Irdai’s earlier order that Sahara Life was no longer a ‘fit and proper’ promoter has been challenged by the appellant in the SAT.
“Considering the aforesaid and the fact that the earlier direction of the respondent in transferring the business to ICICI Prudential Life Insurance was set aside in 2018, and since then, no steps have been taken to transfer the policies, we find it strange that such steps have been taken after a gap of fiveyears and that too without granting an opportunity of hearing,” the tribunal said in its order.
The tribunal added that there was no “tearing urgency” in transferring the policies when the respondent (Irdai) had earlier directed by its order dated June 23, 2017, to service existing policyholders and collect renewal premiums was still continuing.
“SILICL is taking all possible actions as per applicable law to ensure that the best interest of its policyholders is secured. The said matter, along with another appeal, is now listed for further consideration and arguments on August 3,” Sahara Life said.
In its order dated June 2, Irdai had transferred the entire business of Sahara Life to SBI Life Insurance, among certain other directions citing policyholder interest. The actions were challengedby Sahara Life before SAT.
In its order, the tribunal noted that Irdai’s earlier order that Sahara Life was no longer a ‘fit and proper’ promoter has been challenged by the appellant in the SAT.
“Considering the aforesaid and the fact that the earlier direction of the respondent in transferring the business to ICICI Prudential Life Insurance was set aside in 2018, and since then, no steps have been taken to transfer the policies, we find it strange that such steps have been taken after a gap of fiveyears and that too without granting an opportunity of hearing,” the tribunal said in its order.
The tribunal added that there was no “tearing urgency” in transferring the policies when the respondent (Irdai) had earlier directed by its order dated June 23, 2017, to service existing policyholders and collect renewal premiums was still continuing.
“SILICL is taking all possible actions as per applicable law to ensure that the best interest of its policyholders is secured. The said matter, along with another appeal, is now listed for further consideration and arguments on August 3,” Sahara Life said.
