Insurance regulator IRDAI has allowed SBI Life Insurance to acquire the business of Sahara India Life Insurance (Silic).
“The authority has identified SBI Life Insurance Company Limited, which is one of the largest life insurers in the country with satisfactory financials, as the acquirer insurer. SBI Life shall take over the liabilities of around 2 lakh policies of Silic, backed by policyholder’s assets, with immediate effect,” IRDAI said in a statement on Friday.
Silic was granted a certificate of registration in 2004. But concerns over financial propriety meant the authority had to appoint an administrator in 2017.
The administrator had found some major concerns which include a diversion of Rs 78.15 crore in the name of security deposits.
The report said the company was mainly surviving on release of reserves which was not sustainable since the new premium has decreased significantly and the affairs were not being managed by its board, but rather by the non-executive chairman.
“SBI has been directed to take adequate steps to reach out to the policyholders of Silic, with regard to servicing of policies, including setting up of a dedicated cell to address the queries of the policyholders of Silic, and also publish necessary details on their website,” the insurance regulator said.
