PRESS NOTE
SAHARA LIFE
INSURANCE SUCCEEDS AGAINST IRDA ORDER
SAT QUASHED IRDA
ORDER TRANSFERING BUSINESS
In a significant
judgement, Securities Appellate Tribunal, (SAT), today, quashed the order dated
July 28, 2017 passed by Insurance Regulatory Development Authority transferring
the Life Insurance business of Sahara Life Insurance to an outside insurer,
namely – ICICI Prudential Life Insurance Co. Ltd.
SAT while allowing
Sahara's appeal, expressed serious concern over the manner Insurance Authority
acted in the matter against Sahara Life and considered the said action of
Insurance Authority highly fatal and irregular so as to vitiate the very
appointment of the Administrator and all his further actions, in the facts and
circumstances of the case. SAT opined that the report of the Administrator
should have at least been supplied to Sahara Life before passing the impugned
order.
Sahara Life
Insurance got a major respite and its stand was vindicated by SAT, when it
remanded and restored the whole matter to the file of the IRDA with a direction
to proceed from the stage of seeking a representation/response from Sahara Life
on the Administrator’s report in question as well as providing opportunity of being
heard to Sahara Life and its stake holders, in consonance with the principles
of natural justice and directing to complete the hearing as per law within
three monthsfrom the date of receipt of Sahara ’s reply to the Administrator’s
report in question as per law and after giving opportunity of hearing to them.
It was contended by
Sahara Life in the said appeal that the Insurance Authority had illegally and
with malafide intent transferred its business to an outside insurer, namely –
ICICI Prudential Life Insurance Co. Ltd. without affording any opportunity of
hearing to it and the Administrator appointed by the Insurance Authority was
acting in concert for the benefit of a third party, who recommended the other
options but unilaterally recommended for transfer of business.
