The Insurance Regulatory and Development Authority of India (IRDAI) has issued a show cause notice to Star Health and Allied Insurance Company for alleged violations of various IRDAI regulations and guidelines. The notice follows an inspection IRDAI conducted for the period from January 31, 2022 to February 11, 2022 and the observations it made pertaining to the company’s business and operational aspects.
The company is in the process of submitting response to the observations, Star Health said in filing. The company has been advised to reply within 21 days from the date of receipt of the notice along with supporting documents. It 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.
The company was undertaking internal assessments with regard to the impact because of the show cause notice.
Star Health is a standalone health insurer, offering a variety of products including health, personal accident, and travel insurance. The company has a strong distribution network and have settled over 1 crore claims. In FY24, they reported a gross written premium of Rs 15,254 crore and a net worth of Rs 6,339 crore.
The company’s net profit fell 11.18% to Rs 111.29 crore on 17.2% increase in total income to Rs 4060.62 crore in Q2 FY25 over Q2 FY24.