Star Health drops 5% as Irdai issues show cause notice for violating norms

The fall in insurer's share price came after the company announced that the Insurance Regulatory and Development Authority of India (Irdai) has issued a show cause notice for violating norms

Star Health share price: Health insurance company Star Health and Allied Insurance shares fell as much as 4.60 per cent to hit an intraday low of Rs 466.15 per share on Monday, December 9, 2024.

 

The fall in insurer’s share price came after the company announced 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, Star Health, said, “We wish to inform you that the inspection of the insurance companies is carried out by Irdai at periodical intervals and the observations are issued by Irdai. Based on the general inspection during the period January 31, 2022 to February 11, 2022 Irdai has issued its observations through the Show Cause Notice (SCN) dated November 4, 2024. These observations relate to business and operational aspects of the Company.” 

 

In response, Star Health said that it is in the process of submitting its response to the observations raised by Irdai. “The Company has adequate systems in place to ensure compliance with various laws and regulations applicable to the Company,” it added.

 

Star Health and Allied Insurance Company Limited, incorporated in 2005 in Chennai, is India's first standalone health insurance provider. 

 

The company received its Certificate for Commencement of Business in December, 2005 from the Registrar of Companies. 

 

Over the years, it has expanded its offerings to include health, personal accident, and overseas travel insurance, catering to the diverse needs of individuals, families, and corporations. 

 

Leveraging a robust distribution network of agents, brokers, and online platforms, Star Health has also established long-standing bancassurance partnerships with banks to deliver its services.

 

Star Health boasts one of the largest hospital networks in India, and offers a wide range of flexible and comprehensive insurance options, including retail health insurance for individuals and families, group health insurance for employees via employer-provided plans, and government health insurance under central or state programmes.

 

The market capitalisation of Star Health is Rs 27,789.01 crore, according to BSE.The 52-week high of Star Health is Rs 647.65 per share, while its 52-week low is Rs 452.45 apiece. The company falls under the BSE 200 category. 

 

At 11:00 AM, Star Health shares were trading 3.27 per cent lower at Rs 472.65 apiece. In comparison, BSE Sensex was trading 0.22 per cent lower at 81,529.40 levels.