Irdai issues show cause notice to Star Health for violating norms

Star Health and Allied Insurance on Friday said that the Insurance Regulatory and Development Authority of India (Irdai) has issued a show cause notice on December 4, 2024, for violation of norms based on the general inspection conducted by the regulator for the period from January 31, 2022, to February 11, 2022.

 

In an exchange filing, the insurer said that it “…has received a Show Cause Notice from the Insurance Regulatory and Development Authority of India (IRDAI) based on the general inspection conducted by them for the period from January 31, 2022, to February 11, 2022, and the comments submitted by the company on the observations.”

 

The notice has been issued for violation of the Irdai (Health Insurance) Regulations, 2016, Irdai (TPA – Health Service) Regulations, 2016, and Irdai (Protection of Policyholders’ Interest) Regulations, 2017, among others.

 

The company must provide a reply within 21 days from the date of receipt of the notice, along with the supporting documents.

 

“The company is in the process of providing adequate replies to the alleged violations and believes that there will not be any impact. However, the outcome and related implications cannot be predicted with certainty at this stage,” the insurer said.

 

Furthermore, the insurer is undertaking internal assessments regarding the impact of the show cause notice, which caused the delay in disclosure to the exchanges, the health insurer added.

 

Shares of Star Health and Allied Insurance Company ended 0.63 per cent lower at Rs 488.65 on the BSE.