SAT sets aside Irdai order against Sahara India Life

The Securities Appellate Tribunal (SAT) on Thursday set aside an order passed by Insurance Regulatory and Development Authority of India (Irdai), directing transfer of insurance business of Sahara India Life Insurance Company to ICICI Prudential Life Insurance Company.

The tribunal asked the insurance regulator to once again give a hearing opportunity to Sahara Life Insurance and pass a fresh order in the matter within three months.

The SAT, however, upheld Irdai’s June 2017 order, directing appointment of an administrator to run the affairs of Sahara Life Insurance. Later that month, the insurance regulator had directed Sahara Life Insurance to stop underwriting new business. In July 2017, Irdai passed another order seeking transfer of the insurance business of Sahara to ICICI Prudential Life Insurance.

The SAT said the action taken by Irdai in July 2017 was in breach of the principles of natural justice as a report prepared by the administrator was not submitted to Sahara India Life Insurance. This order was passed following a report submitted by the administrator to Irdai on June 22.