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“…that the company 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 31 January 2022 to 11 February 2022 and the comments submitted by the Company on the observations. The alleged violations by the company provided in the Show Cause Notice pertain to various IRDAI Regulations and Guidelines,” according to a stock exchange filing.
The show cause notice, which was issued on December 4, 2024, highlights non-compliance with a range of IRDAI guidelines, including the IRDAI (Health Insurance) Regulations, 2016, the IRDAI (TPA – Health Service) Regulations, 2016, and the IRDAI (Protection of Policyholders’ Interest) Regulations, 2017, among others.
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The company has been asked to provide a detailed response within 21 days, addressing the alleged violations and submitting the supporting documents as required. Star Health is currently in the process of preparing its response, and the management has expressed confidence that there will be no material impact on its operations or financial standing due to these issues.
“The Show Cause Notice requires the Company to provide a reply within 21 days from the date of receipt of the Show Cause 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,” Star Health said.
The company believes that the violations, if any, will not have significant consequences on its business operations. However, given that the matter is still under review, the outcome and its potential implications remain uncertain at this stage.
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The delay in disclosure was attributed to the company’s internal assessments regarding the potential impact of the Show Cause Notice. Now that the company has a clearer understanding, it has disclosed the development to the stock exchanges, ensuring full compliance with regulatory requirements.
Shares of Star Health and Allied Insurance Company Ltd ended at ₹489.65, down by ₹2.10, or 0.43% on the BSE.
