Like in IL&FS, a similar procedure will have to be followed: Khuntia
Mumbai: The exposure of insurance companies to the debt-laden DHFL will have to be written off using due process, said Irdai Chairman Subhash Chandra Khuntia.
Speaking on the sidelines of an event here, Khuntia said, “Like in IL&FS, a similar procedure will have to be followed. There is a procedure on how it has to be written off after how much time.”
“If DHFL goes under liquidation, it will be sold and someone else will take over. Insurance companies are also part of the inter-creditor agreement. So they will also get proceeds that are available on sale of the company,” said Khuntia. He also said the insurance subsidiaries of DHFL—DHFL Pramerica Life Insurance and DHFL General Insurance—have adequate solvency and that there is no cause for concern.