CHENNAI: The Indian insurance
regulator has said that Rs 78 crore was siphoned off by Sahara India Life Insurance Ltd
in the name of security deposits.
The Insurance Regulatory and
Development Authority of India (IRDAI) late on Friday also said the promoters of
Sahara India Life Insurance Company were no more "fit and proper"
persons, and ordered transfer of all policies to ICICI Prudential Life.
The appointed date for the transfer
of Sahara India Life to ICICI Prudential Life is July 31.
In an order uploaded at the IRDAI
website, its Chairman T.S. Vijayan said as per the report of the administrator
appointed for Sahara India Life, a sum of Rs 78 crore had already been
"siphoned off in the name of security deposits," and the promoters
are no more "fit and proper", the shareholders and company board are
not keen in recovery plan and the company is mainly surviving on release of
reserves.
However, the situation may not
continue for long as the new premiums of the company had come down
significantly, it said.
In June 2017, R.K. Sharma, a General
Manager at the IRDAI, was appointed as Administrator for Sahara India Life to
manage the affairs of the private life insurer.
Based on the June 22 report of
Sharma, the insurance regulator concluded that it is not in the best interests
of policyholders to allow Sahara India Life to transact business further.
The IRDAI decided to transfer the
life insurance portfolio to some other life insurer which is profitable, does
not have any accumulated losses and compliant with the limits on management
expenses and solvency margin.
According to IRDAI, ICICI Prudential
Life expressed interest within the stipulated time though six life insurers
complied to the above criteria.
As per IRDAI order, ICICI Prudential
will assume the insurance liabilities of Sahara India Life as per the valuation
by an independent actuary as on July 31.
The IRDAI has ordered Sahara India
Life to transfer to ICICI Prudential Life the investment pertaining to the
policyholders, loans against policies, current assets representing current
liabilities, cash or cash equivalent to the extend of non-par fund and
cash/cheques in Sahara India Life's branches towards premium for policies.
According to IRDAI, Sahara India
Life should also transfer asset corresponding to the policyholder liabilities
as per the statutory valuation report submitted by the company's appointed
actuary as on March 31, 2017.
Sahara India Life should also
transfer the assets corresponding to the changes in the policyholder
liabilities as on July 31, 2018 as per the valuation of insurance liabilities
report prepared by the independent actuary.
Incidentally, it took two years for
IRDAI to conclude that the promoters of Sahara India Life are not "fit and
proper" to run an insurance company.
In 2015, Securities and Exchange
Board of India (SEBI) ordered cancellation
of certificate of registration of Sahara Mutual Fund as it found the fund
house, Sahara Asset Management Company (AMC) and Sahara Sponsor, not "fit
and proper" to carry on the business.
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