Irdai bars Anil Ambani-led Reliance Health Insurance from selling policies

Irdai has also asked RHICL to "ring fence" its residual assets and not dispose them of without the insurance regulator's prior written approval.

Insurance sector regulator Irdai has barred Anil Ambani-led Reliance Health Insurance Ltd (RHICL) from selling new policies due to its weak financial health.

The regulator has also asked RHICL to transfer the entire policyholders' liabilities along with financial assets to Reliance General Insurance Co Ltd (RGICL), which in turn will settle claims of the existing policyholders.

In an order, it said the "solvency of the RHICL is considerably" below the norms and, hence, "continuation of transaction of health insurance business by RHICL at this junction, will not be in the interest of the policyholders".

Solvency ratio loosely refers to the financial ability of