Press Release
Reliance
Health Insurance Company (RHICL) which commenced operations in October, 2018
has not been able to maintain the required solvency margin since June, 2019.
After it came to the knowledge of IRDAI in the later part of August, 2019, a
direction was issued to RHICL to restore the required level of solvency margin within
a period of one month. However, despite repeated follow up, this has not been
carried out so far. Thereafter, the insurer was issued a show cause notice and
given another opportunity to present its case. As there has been no improvement
but further deterioration in the financial position of RHICL, in order to
protect the policyholders’ interest, IRDAI has now issued directions to the
insurance company to (i) stop selling new policies and (ii) to transfer the entire
policyholders’ liabilities along with financial assets to Reliance General
Insurance Co. Ltd (RGICL) with effect from 15th November, 2019. Till
that time, RHICL has been prohibited from using its assets for any payment
other than claim settlement. It is estimated that the underlying assets are
sufficient to meet the claims of the existing policyholders that may arise in
future.
RGICL
has been directed to service the claims of the RHICL policyholders promptly and
efficiently with effect from 15th November, 2019. IRDAI will be closely
monitoring the situation to ensure smooth transfer of the portfolio, settlement
of claims and protection of the interest of the policyholders.
In so far as policyholders of RHICL are
concerned, the Authority would like to assure them that all their interests
have been adequately protected and all genuine claims will continue to be duly
honored.
Date:
06.11.2019
Place:
Hyderabad
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