IRDAI finds lapses in claim settlement practices of Star Health, says CNBC-TV18; stock hits 52-week low

Star Health share price drops after IRDAI finds lapses in claim settlement practices.

Shares of Star Health and Allied Insurance Company plunged to a fresh 52-week low on Tuesday after the Insurance Regulatory and Development Authority of India (IRDAI) identified lapses in the company's claims settlement practices.

However, Star Health has clarified 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.

According to a report by CNBC-TV18, the regulator is expected to take further action after concluding its investigation.

The stock fell 3.82 percent to an intraday low of Rs 345.3 per share on the NSE, marking its lowest level in a year. The scrip has been on a losing streak for two consecutive sessions, shedding 4.27 percent during this period.

According to the report, IRDAI conducted inspections across 8-10 general and health insurance companies, scrutinising key aspects such as claims repudiation, approvals, queries raised, and deductions.

Earlier, Chennai-based insurer had come under scrutiny after a cyberattack that compromised sensitive information of over 31 million customers. Stolen data, including names, PAN details, medical records, and policy information, was reportedly being sold online for as much as $150,000, with smaller sets priced at $10,000.