The Insurance Regulatory and Development Authority of India (IRDAI) has announced taking over the management of the Sahara India Life Insurance Company.
Insurance regulator, IRDAI in an order issued in New Delhi on 12 June 2017 said that Subrata Roy run insurer was "acting in a manner" prejudicial to the interest of subscribers.
IRDAI appointed one of its general managers, RK Sharma, as administrator to manage the affairs of the insurer with "immediate effect". IRDA appointed RK Sharma (GM (F&A-NL)) the administrator of Sahara India Life Insurance Company by exercising the powers granted under section 52 A of the Insurance Act, 1938.
The Administrator shall conduct the management of the business of the insurer as per applicable provisions of the Insurance Act, 1938.
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".
IRDAI 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.
IRDA in an official notification said, “The Policyholders of M/s Sahara India Life Insurance Co. Ltd. are hereby informed that the affairs of the insurer shall be managed by the Administrator. It will be the endeavour of the Administrator to ensure the servicing of the policyholders and to manage the affairs of the insurer in as smooth a manner as feasible.”
When: 12 June 2017