IRDAI challenges stay on Sahara Life Policies’ transfer to SBI Life

The Supreme Court declined immediate hearing on a petition filed by IRDAIchallenging an order of Securities Appellate Tribunal (SAT) staying the insurance regulator’s decision to transfer nearly two lakh policies under Sahara Life to SBI Life.

Appearing for the regulator, solicitor general Tushar Mehta told a vacation bench of Justices Surya Kant and M Sundresh that IRDAI had on June 2 directed transfer of the policies to SBI as Sahara India Life Insurance Company (SILIC) has been facing financial and governance issues and failed to comply with the regulator’s directions given its deteriorating financial conditions.

Mehta said that the stay on the June 2 order of IRDAI for transition of Sahara policies to SBI Life has created a hiatus as there is confusion as to which one of them during the interregnum would receive the premiums paid by policyholders and which one would settle the claims as also payments towards maturing policies.