Sahara India Life Insurance gets relief from SAT, ban on transfer of two lakh policies to SBI Life.

Sahara India Life Insurance Company Limited (SILIC) has got a major relief from the Securities Appellate Tribunal (SAT). Ruling in favor of Sahara India Badi, SAT has stayed the order of Insurance Regulatory and Development Authority (IRDAI) to transfer two lakh policies to SBI Life Insurance (SBI). In its order passed on June 2, IRDA had asked to transfer the entire business of Sahara India Life to SBI Life.

Sahara had appealed

This order of SAT has come on the appeal of Sahara India Life in which the order of Insurance Regulatory and Development Authority of India (IRDA) was challenged. In an order earlier this month, IRDA had asked Sahara India Life to transfer its entire business to SBI Life. Apart from this, instructions were also given to transfer the book accounts and bank accounts. IRDA had taken this decision in view of the deteriorating financial health of Sahara Group’s insurance company. Sahara India Life appealed against this in SAT.

What will happen to the policies now?

After the latest order of SAT, the case of about 2 lakh policy holders of Sahara is currently stuck. The Appellate Tribunal said in its order that the implementation of this order of IRDA is being stayed till further orders. The matter has now been listed for further hearing on August 3. In a separate statement, Sahara India Life said prima facie the principles of natural justice were not followed. It said that Sahara India Life is taking all possible steps to safeguard the best interest of its policyholders.

SBI gave this statement

Only last week, SBI Life refused to call it a merger, saying it was just a transfer of assets. SBI Life has said on the transfer of liabilities and assets of policyholders of Sahara Life Insurance that it is not a merger of two companies. As per the statement, SBI Life will contact these policyholders shortly and provide relevant information for smooth transaction.