SAT directs Irdai to recalculate unlawful gains in SBI Life Insurance case

The insurance regulator IRDAI has been directed by the Securities Appellate Tribunal (SAT) has to recalculate the unlawful gains through advance premium that was collected by SBI Life Insurance Company and accordingly pay the same to the policyholders. SBI Life has filed an appeal against IRDAI’s order in which the regulator has directed the insurer to disgorge and refund over Rs 275 crore to policyholders. SAT said, “IRDAI did not calculate the disgorgement amount correctly and, therefore, directed the insurance regulator to recalculate and recover the unlawful gains.” “We are therefore of the opinion that the amount of Rs 275 crore has wrongly been calculated by the respondent (IRDAI). The appeal is partly allowed. The matter is remitted to Irdai to recalculate the unlawful gain, namely, the interest earned on advance premium collected and recover the same accordingly and pay it to the policyholders,” the tribunal noted.