The Securities Appellate Tribunal has stayed insurance coverage regulator IRDAI’s June 2 order transferring the life insurance coverage business of Sahara India Life Insurance Co. to SBI Life Insurance Company.
Ruling on an enchantment filed by the Sahara Group entity, the tribunal famous that IRDAI had issued a slew of instructions for transferring the insurance policies to SBI Life in addition to the books of accounts and financial institution accounts. “We stay the effect and operation of the impugned order dated June 2 till further orders of this tribunal. The exemption application and the stay application are disposed of,” SAT mentioned in its order.
It allowed IRDAI three weeks time to file a reply.
“Rejoinder may be filed within three weeks… the matter would be listed for admission and for final disposal along with [a] connected appeal on August 3,” the SAT mentioned within the order citing the info main to the current enchantment by Sahara Life.
The insurance coverage regulator, earlier this month mentioned: “SBI Life shall take over the policy liabilities of around two lakh policies of SILIC, backed by the policyholders’ assets, with immediate effect”. Policy knowledge of Sahara Life revealed that the corporate’s portfolio was exhibiting a ‘run-off trend’. The monetary place had been deteriorating with rising losses and better proportion of claims to whole premium, IRDAI had noticed.
EOM
