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IRDA concerned about Sahara Life Insurance, takes matters in own hands

IRDA concerned about Sahara Life Insurance, takes matters in own hands
Observing serious concerns with regards of the governance aspects, declining business and financial position of Sahara India Life Insurance Company, the regulator today appointed R.K. Sharma, General Manager IRDAI, as Administrator for managing the affairs of the insurance company. 

The Insurance Regulatory and Development Authority of India (IRDAI) believes that Sahara Life is likely to damage interest of insurance policyholders. The regulator said that financial position of the company does not reflect that it is carrying on life insurance business "in a manner likely to be prejudicial to the interests of holders of life insurance policies; and why appropriate proceedings should not be initiated." 

The regulator mentioned that chairman (Subrata Roy) of the Board was in judicial custody and people were not willing to join the company. In its response, Sahara Life said that the absence of chairman had never affected the Boards’ decisions on all activities of the SILICL. 

During the April-May period of the current fiscal, Sahara Life Insurance Company sold 665 polices worth Rs 1.53 crores. In 2016-17, the insurer collected premium worth Rs 44.68 crore from 16,058 customers. 

R.K. Sharma will take on his newly appointed role with immediate effect to protect the interests of the existing customers. IRDA has asked the insurance company directors, management and staff to extend all possible assistance and cooperation to the administrator to manage the affairs of Sahara Life Insurance Company. 

The regulator said that policyholders' requests for settlement of claims and other benefits will be processed as per respective terms and conditions of the policy within a period of 30 days.

 

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