SBI Life to take over 200,000 policies of Sahara India Life Insurance

India’s Insurance Regulatory and Development Authority (Irdai) has designated SBI Life Insurance to take over responsibilities of around 200,000 Sahara India Life Insurance (SILIC) policies as the latter failed to comply with regulatory directives, amid deteriorating financial health after being placed under the insurance umbrella. restrictions in 2017.

The insurance regulator has appointed a committee of Irdai members made up of life, actuarial, finance and investment experts to take the necessary steps to ensure a smooth transition for all Sahara Life policyholders.

“SBI Life has been directed to take appropriate steps to reach out to SILIC policyholders, in relation to servicing policies, including setting up a dedicated cell to address inquiries of SILIC policyholders, as well as posting the necessary details on their website,” Irdai said.

SBI Life’s batch of premiums for new business in April was Rs.1,336.87 crore – an increase of 8 per cent over the same period in the previous year. For the 23rd financial year, SBI Life – one of the leading private life insurers in the country – collected new business premiums of Rs.29,587.6 crore, an increase of 16.22 per cent over the previous financial year.

“We are urgently working on the process of integrating all of these policyholders into our systems. While full integration may take some time, we are asking policyholders to reach out to us at our helpline number.

SBI Life added, “We will soon be communicating with policyholders and sharing with them the different touch points and method of service for a smooth transition.”

SBI Life, which has 990 branches across the country, serves 49,036,079 policyholders.

The Insurance Regulatory Authority said that Sahara India Life, which was granted an insurance license in February 2004, had failed to take any steps to protect the interests of policyholders despite being given plenty of opportunities and enough time, and the company’s portfolio was showing a new trend. . The financial situation was deteriorating as losses rose.

The financial situation has been deteriorating with high losses and a high ratio of claims to total premiums. If this trend is allowed to continue, the situation will worsen and lead to capital erosion and SILIC may not be able to fulfill its obligations to its policyholders, thus endangering the interests of its policyholders.

“After considering all the facts and circumstances, the Authority determined at its meeting on June 2, 2023 that action is warranted to protect the interests of SILIC’s policyholders. Accordingly, in the exercise of its powers under subsection (2) of Section 52B of the Act Under the Insurance Act of 1938, the Authority resolved to transfer the life insurance business of SILIC to another suitable life insurance company with immediate effect.”

Ardai said it will continue to monitor the situation and issue necessary guidance as required for the benefit of Celec’s policyholders.