Star Health and Allied Insurance Hits 52-week Low amid Reports of IRDAI Probe on Claim Settlements
Moneylife Digital Team 25 March 2025
Shares of Star Health and Allied Insurance Company Ltd hit their 52-week low at Rs345.45 on Tuesday following a report about the Insurance Regulatory and Development Authority of India (IRDAI) likely to take action against the insurer for serious lapses in claims settlement practices. 
 
According to a report by CNBC-TV18, the regulator is expected to take further action after concluding its investigation. In a post on X, the business channel says, "IRDAI finds serious lapses in claims settlement practices of Star Health and Allied Insurance, likely to take action against co once investigations conclude. IRDAI recently concluded an inspection of Star Health with respect to claims settlement practises."
 
In a regulatory filing, Star Health and Allied Insurance says, "We would like to highlight that IRDAI conducts regular audits and thematic inspections as part of its regulatory oversight, in line with the framework outlined in its master circulars. These assessments are a routine process to ensure compliance across the industry. The media statement appeared to be speculative and motivated in nature, and we have not received any communication on this subject from the regulator. We continue to focus on enhancing our claims processes and strengthening customer trust by adhering to the highest standards of service and compliance."
 
The report from CNBC-TV18 further says the regulator also conducted inspections across eight to 10 general and health insurance companies, scrutinising key aspects such as claims repudiation, approvals, queries raised and deductions. 
 
In December last year, IRDAI issued a show-cause notice to Star Health and Allied Insurance  for alleged violations of various regulations and guidelines. "Based on the general inspection during the period 31 January 2022 to 11 February 2022 IRDAI has issued its observations through the show cause notice (SCN) dated 4 November 2024. These observations relate to business and operational aspects of the Company," the insurer had said in a regulatory filing. 
 
Star Health and Allied Insurance closed Tuesday 3.29% down at Rs347.25 on the BSE, while the 30-share Sensex ended the day flat at 78,017.19 points.
Comments
kalemohan
3 months ago
I have bad experience of The United India And Bajaj Alllianz.
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