The Insurance Regulatory and Development Authority of India (IRDAI) has asked Reliance Health Insurance Company (RHCIL) to stop selling new policies and transfer the entire policyholders' liabilities to the authority. IRDAI announced this through a press release on November 6. From now on, the insurer can only serve its old policies
IRDAI said the company had not complied with its instructions. "Despite repeated follow-up, the insurer did not improve its capital. Thereafter, the insurer was issued a
show-cause notice and given another opportunity to present its case. As there has been no improvement but a further deterioration in the financial position of RHICL, to protect the policyholders' interests,"
The IRDAI said it was closely monitoring the situation and has assured RHICL policyholders that their interests "have been adequately protected" and all genuine claims will continue to be duly honoured.
IRDAI said the company had not complied with its instructions. "Despite repeated follow-up, the insurer did not improve its capital. Thereafter, the insurer was issued a
show-cause notice and given another opportunity to present its case. As there has been no improvement but a further deterioration in the financial position of RHICL, to protect the policyholders' interests,"
The IRDAI said it was closely monitoring the situation and has assured RHICL policyholders that their interests "have been adequately protected" and all genuine claims will continue to be duly honoured.