Star Health Insurance's shares hit 52-week low amid reports of Irdai probe

Company calls it a routine exercise to ensure compliance

Star Health Insurance’s shares dropped 3.83 per cent on Tuesday to hit 52-week low, following a news report that the Insurance Regulatory and Development Authority of India (Irdai) has identified lapses in the company’s claims settlement practices and is likely to take action against the company.

 

On its part, the company has described it as a routine inspection which the regulator carries out to ensure compliance.

 

Its shares closed at ₹347.25 on the BSE.

 

According to the report, Irdai conducted inspections on the company to assess claims repudiation, claim approvals, queries raised during settlements, and deductions applied in the process. The report also mentioned that Irdai also conducted inspections on 8-10 general and health insurance companies.

 

Responding to the report, the company in a statement said, “…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 company indicated that the news report was speculative in nature, and they 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 company said.

 

Irdai has asked insurance companies to disclose claim settlement and rejection data on their websites.

 

The availability of such data can help customers in choosing the right insurance policy and the right insurance provider for them. According to Star Health’s earnings report for Q3FY25, the claims rejection rate stood at 10 per cent.