Insurance regulator IRDAI, which earlier this month had appointed an administrator to manage the affairs of Sahara India Life Insurance, on Friday directed the company not to procure new business.
The company is directed “not to procure/collect proposal deposits/underwrite new business with immediate effect, i.e., close of business on June 23, 2017,” the regulator said in its order.
Advising Sahara India Life to inform all concerned such as agents and intermediaries of the direction, it said the company should ensure that it did not conduct new insurance business immediately on receipt of the order.
However, the company is directed to “continue to collect and account for renewal premium; and service the existing business and policyholders, unhindered,” the Insurance Regulatory and Development Authority of India said.
IRDAI had on June 12 appointed its General Manager (F&A-NL) R.K.Sharma as administrator of the company and asked him to file a report on the most advantageous course of action in the interest of the policy holders. There were reasons to believe that Sahara India Life “is acting in a manner [that is] likely to be prejudicial to the interests” of the policy holders, the regulator had stated.
