Chennai, July 31 (IANS) The Securities Appellate Tribunal (SAT) on Monday provided one week relief to Sahara India Life Insurance Company Ltd against the order of insurance regulator IRDAI transferring its life insurance policy portfolio of ICICI Prudential Life Insurance Company Ltd.
In a statement, Sahara India Life said SAT, condemning the order of Insurance Regulatory and Development Authority of India (IRDAI), also raised serious objection against the order.
The SAT had ordered status quo till it completes hearing on August 7.
On July 28, IRDAI had ordered transfer of Sahara India Life’s business portfolio to ICICI Prudential Life Insurance effective from July 31, 2017.
Last month, IRDAI had appointed its own official as an administrator of Sahara India Life. The administrator had initially ordered Sahara India Life to stop accepting new business.
The IRDAI had ordered transfer of Sahara India Life’s insurance business to ICICI Prudential Life based on the administrator’s report.
According to the statement, Sahara India Life felt that the order was passed to benefit a third party and in violation of the principles of natural justice.
Sahara India Life challenged the IRDAI action, stating that its business was continuously in profit and the company has been in absolute and strict compliance of all regulatory norms /directions issued by the regulator.
It argued that there has not been even a single case of any complaint of non-payment of any claim to any policy holder and though the regulatory requirement of solvency margin is only 1.5, Sahara Life has been maintaining solvency margin of more than 8 which reflects the company’s sound financial health.
IRDAI had not even framed any scheme, to safeguard the interest of policy holders, which is a statutory requirement before transferring the business to ICICI Prudential, it said.
The order was passed in great hurry and there was neither any transparency in the action of IRDAI nor the legal provisions were complied with, Sahara India Life said.