The Securities Appellate Tribunal has stayed insurance regulator IRDAI’s June 2 order transferring the life insurance business of Sahara India Life Insurance Co. to SBI Life Insurance Company.
Ruling on an appeal filed by the Sahara Group entity, the tribunal noted that IRDAI had issued a slew of directions for transferring the policies to SBI Life as well as the books of accounts and bank 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 said 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 said in the order citing the facts leading to the present appeal by Sahara Life.
The insurance regulator, earlier this month said: “SBI Life shall take over the policy liabilities of around two lakh policies of SILIC, backed by the policyholders’ assets, with immediate effect”. Policy data of Sahara Life revealed that the company’s portfolio was showing a ‘run-off trend’. The financial position had been deteriorating with rising losses and higher percentage of claims to total premium, IRDAI had observed.
EOM
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