India’s insurance regulator on Monday raised concerns over the management of Sahara India Life Insurance Co, a wholly-owned subsidiary of Subrata Roy-led Sahara Group, saying it has reasons to believe that the insurer may act in a manner “prejudicial” to the interests of policy holders.
The regulator named its general manager R K Sharma as the administrator of Sahara India Life Insurance with immediate effect.
"The insurer is acting in a manner likely to be prejudicial to the interests of holders of life insurance policies and the orderly growth of the insurance sector as a whole," Insurance Regulatory and Development Authority (Irda) said in its order. It observed serious concerns with regards to the governance of the company, its declining business and financial position following a review of the insurer’s financial statements for the year to March 2015.
The regulator also noted that the company had not filed its business plan as directed.
It said the company’s chairman Subrata Roy was in judicial custody and that people were not willing to join the company.