Reliance Insurance new regulator

Update

In a setback to the newly set up Reliance Health Insurance Company, the insurance regulator has barred it from selling new policies and has asked it to transfer the entire policyholders’ liabilities along with financial assets to Reliance General Insurance by November 15.

The order by the Insurance Regulatory and Development Authority of India comes after it was found that Reliance Health Insurance Company (RHICL) has not been able to maintain the required solvency margin since June this year.

“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,” the IRDAI noted, adding that the insurer was issued a show-cause notice and given another opportunity to present its case.

RHICL