Chennai: In a major relief to private life insurer Sahara Life Insurance, the Securities Appellate Tribunal (SAT) on Thursday quashed the Indian insurance regulator's order transferring the business to rival ICICI Prudential Life Insurance Company Ltd, said Sahara Life in a statement.
According to Sahara Life Insurance, the SAT quashed the Insurance Regulatory and Development Authority of India's (IRDAI) order dated July 28, 2017, transferring its life insurance business ICICI Prudential Life.
It said the SAT, while allowing Sahara Life's appeal against IRDAI's order, also expressed serious concern over the manner the sectoral regulator acted in the matter.
The SAT opined that the report of the Administrator-appointed by IRDAI to run Sahara Life- should have at least been supplied to Sahara Life before passing the impugned business transfer order.
According to Sahara Life, the SAT has directed IRDAI to proceed from the stage of seeking a representation/response from Sahara Life on the Administrator's report in question.
The SAT also ordered IRDAI to provide Sahara Life and its stakeholders the opportunity of being heard, in consonance with the principles of natural justice.
As per the SAT orders, the IRDAI should complete the hearing as per law within three months from the date of receipt of Sahara Life's reply to the Administrator's report in question as per law and after giving opportunity of hearing to them, Sahara Life said.