IRDAI chief: Insurance companies to follow procedure while writing off investments in DHFL

With the troubled Dewan Housing Finance Corporation Ltd now under the NCLT, insurance companies will have to begin writing off their investments in it.

“Other insurance companies will have to deal with their exposure in DHFL. They will have to follow a similar procedure as was done in the case of IL&FS. There is a procedure on the time it has to be written off, and it will have to be done,” said Subhash Chandra Khuntia, Chairman, Insurance Regulatory and Development Authority of India.

Speaking to presspersons on Friday, Khuntia said IRDAI had also allowed insurers with investment in DHFL to become a part of the inter-creditor agreement. They would be able to get some dues when the resolution process takes place, he said.

He also stressed that there was no problem with the insurance subsidiaries of DHFL – DHFL Pramerica Life Insurance and DHFL General Insurance.

“The companies are solvent. DHFL going to NCLT should not affect them,” he said, adding that even if DHFL goes to liquidation, it will be sold and someone will buy it, so their share in the company would be transferred to somebody else.