In a first, SAT admits SBI Life’s petition against IRDAI

In a first, the Securities Appellate Tribunal (SAT) on Tuesday admitted a petition filed by insurance company SBI Life against its regulator IRDAI and fixed the next hearing on the matter to July 9.

SAT has been so far hearing appeals against orders passed by the capital markets regulator Sebi, but the new insurance laws have made provision for the Tribunal to hear cases against insurance sector regulator IRDAI as well. SBI Life has dragged IRDAI (Insurance Regulatory and Development Authority of India) to the SAT challenging the Rs 275 crore penalty imposed on it by the regulator. This is the first that the SAT has admitted a petition against the IRDAI after the new Insurance Act came in force earlier this year. SBI LIfe filed the petition on April 6, which was admitted by the SAT presiding officer JP Devadhar, even though any separate bench has not been created for insurance related matters as yet. 

SBI Life is seeking relief against an IRDAI order asking it to refund Rs 275 crore to its policyholders who had bought its Dhanraksha Plus policy in the past.