SBI Life, a subsidiary of nation’s largest lender State Bank of India (SBI), has mentioned it’s not a merger between the 2 firms however only a transfer of the policyholder related property and liabilities of Sahara Life Insurance.
On Friday, regulator IRDAI directed SBI Life Insurance to takeover the coverage liabilities of about two lakh insurance policies together with property of careworn Sahara India Life Insurance Co. Ltd. (SILIC).
The choice was taken on the assembly of the Insurance Regulatory and Development Authority of India (IRDAI) in view of the “deteriorating financial health of the SILIC.”
Following the IRDAI order, SBI Life assured two lakh policyholders of “high levels” of service and dedication as is accorded to our clients.
“We have started and we are expeditiously working on the process of integrating all these policyholders in our systems. While the full integration may take some time, we request these policyholders to reach out to us on our helpline number 1800 267 9090 or email us at saharalife@sbilife.co.in,” it mentioned.
SBI Life will shortly attain out to those policyholders and intimate them about numerous contact factors and method of servicing for a easy transition, it mentioned.
Sahara Life Insurance was additionally not allowed to underwrite new enterprise. Thereafter, additional instructions have been issued to the insurer to satisfy the regulatory necessities.
“Despite being provided ample opportunities and sufficient time to ensure compliances, SILIC has failed to comply with directions of the authority and take any affirmative steps to protect the interests of its policyholders,” the regulator had mentioned.
Further, the coverage information of SILIC reveals that the corporate’s portfolio is exhibiting run-off pattern. The monetary place has been deteriorating with rising losses and better proportion of claims to whole premium.
“If the trend is allowed to continue, the situation will worsen and lead to erosion of capital and SILIC may not be able to discharge its liabilities towards policyholders, thereby endangering the interest of its policyholders,” IRDAI had mentioned.
It mentioned the motion in opposition to SILIC has been taken after due consideration of all of the info and circumstances.
The authority added in its assembly held on June 2, 2023 that the motion was warranted to guard the curiosity of the policyholders of SILIC.
Further, IRDAI mentioned it’s going to proceed to observe the scenario and in addition problem mandatory instructions as required within the curiosity of the policyholders of SILIC.
