Sahara Life Insurance cannot sell new plans; to service existing polices: IRDAI

In an order, the Insurance Regulatory and Development Authority of India (IRDAI) has directed Sahara India Life Insurance to continue collection and accounting of the renewal premium and service the existing business and policyholders without any interruption.

However, insurer is not allowed to procure or collect proposal deposits and underwrite new business with effect from the close of business on June 23, 2017. The company should duly inform the agents and other distribution channels about the same. it said.

On June 12, the insurance regulator had taken over the administration of Sahara India Life Insurance, a first of its kind move in the insurance sector. It has named RK Sharma, General Manager, IRDAI, as administrator to manage the affairs of the insurer. Lucknow-based Sahara India Life Insurance is promoted by Sahara Pariwar Group headed by Subrata Roy.

In the long-running SEBI-Sahara case, the Supreme Court in August 2012 had ordered the group to deposit with the regulator over Rs. 24,000 crore collected from nearly three crore investors through issuance of bonds. Roy has also been arrested subsequently and the case is in progress in the apex court.