New Delhi: Insurance Regulatory and Development Authority of India (IRDA) on Monday appointed an administrator to manage Sahara India Life Insurance Company, saying Subrata Roy-run insurer was “acting in manner” prejudicial to interest of subscribers.
R.K. Sharma, general manager, IRDA has been appointed as the administrator with “immediate effect”, the insurance regulator said in an order.
In the order, the regulator said it has “reasons” to believe that Sahara India Life Insurance Company “is acting in a manner likely to be prejudicial to the interest of holders of life insurance policies”.
The insurer has sold 665 policies worth Rs1.53 crore during April-May period of the current fiscal. The company had collected premium worth Rs44.68 crore from 16,058 customers in 2016-17.
“The administrator shall act as per powers and duties as per the applicable provisions…and manage the business with the greatest economy compatible with efficiency and regular reporting to the IRDA,” the order signed by IRDA chairman T.S. Vijayan.
The regulator has asked the directors, management, and staff of the insurer to extend all possible assistance and cooperation to the administrator to manage the affairs of Sahara Life Insurance Company. IRDA further said it will be the endeavour of the administrator to ensure the servicing of the policyholders and managing the affairs of the insurer in a smooth manner as far as feasible.
In a related FAQ (Frequently Asked Questions), the regulator said that all the 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.
Also, the insurer will continue to offer all the policy servicing activities as per respective policy terms and conditions.