Star Health Insurance: Insurance regulator IRDA has found several irregularities against the leading health insurance company Star Health. Sources say that strict action can be taken against the company, while the company has rejected all these allegations.
After the corona epidemic, the demand for health insurance has increased the most and the health insurance companies have created the most ruckus. The situation has become such that the number of claim rejections has increased so much that even the insurance regulator IRDAI had to intervene. After the intervention of the regulator, the shares of the companies have seen a sharp decline, especially the value of the shares of Star Health Insurance has gone down to a 52-week low.
Sources say that the shares of Star Health and Allied Insurance Company reached a new low of 52 weeks on Tuesday, March 25. However, on Wednesday, there was a slight improvement and the price reached Rs 347.70. This decline came after the Insurance Regulatory and Development Authority of India (IRDAI) revealed serious flaws in the company’s claim settlement.
#CNBCTV18Exclusive | #IRDAI finds serious lapses in claims settlement practices of #StarHealthInsurance, likely to take action against co once investigations conclude
IRDAI recently concluded inspection of Star Health with respect to claims settlement practises pic.twitter.com/lf48RG3whp
— CNBC-TV18 (@CNBCTV18Live) March 25, 2025
According to the report, IRDAI inspected 8-10
general and health insurance companies, in which they investigated important aspects like rejection of claims, approval, questions raised and deductions. The most irregularities were seen in the claim settlement processes of Star Health. Earlier, this Chennai-based insurance company came under investigation after a cyber attack in which sensitive information of more than 3.1 crore customers was leaked. The stolen data included names, PAN details, medical records and policy information. This information was being sold for 1.5 lakh dollars.
The company gave clarification
Star Health issued a clarification saying that we would like to state that IRDAI conducts regular audits and thematic inspections as part of its regulatory oversight, as per the framework mentioned in its master circular. These assessments are a regular process to ensure compliance in the industry. The news in the media seems to be based on speculation and motivated and we have not received any notice or information from the regulator on this subject.
IRDA can take strict action.
Star Health may have termed the media reports as speculation, but sources say that the regulator has found serious irregularities in the investigation and it can take strict action against the company. Especially, the company has adopted a very arbitrary attitude regarding claim settlement and the settlement of a large number of customers has been rejected.
