IRDA has appealed to the Supreme Court against the stay order issued by SAT. The stay order pertains to the transfer of Sahara India Life Insurance’s business to SBI Life Insurance. IRDA believes that the stay order is erroneous and has filed an appeal to challenge it.
The SAT had stayed IRDA’s order on June 2, 2023, while hearing an appeal filed by Sahara Life against the order.
In its appeal to the Supreme Court, IRDA has argued that SAT’s stay order is “erroneous” and “without jurisdiction.”
IRDA has also argued that the stay order is “causing irreparable harm” to the interests of policyholders of Sahara Life.
The Supreme Court is yet to hear IRDA’s appeal.
Reasons why IRDA has moved the Supreme Court:
- SAT’s stay order has caused uncertainty for Sahara Life’s policyholders.
- The stay order has hindered IRDA from safeguarding the interests of Sahara Life’s policyholders.
- The stay order has resulted in delays in the business transfer process from Sahara Life to SBI Life.
- The Supreme Court’s decision will greatly influence the insurance industry in India, establishing a precedent for future cases involving life insurance business transfers.
Possible outcomes of the Supreme Court’s decision:
- Upholding SAT’s stay order: Sahara Life remains in business and policyholders remain covered by its policies.
- Overturning SAT’s stay order: Sahara Life’s business is transferred to SBI Life.
- Ordering a fresh hearing: The case is heard again from the beginning.
It is important to note that the Supreme Court has not yet made a decision in this matter. The Supreme Court is expected to hear IRDA’s appeal in the coming months.