Star Health Share Price Hits 52-Week Low; Company Refutes IRDAI Concerns

Star Health and Allied Insurance’s share price traded at ₹345.75 at 9:55 AM on the NSE, marking a decline of ₹1.25 (-0.36%) from the previous close of ₹347. The stock opened at ₹345.10, reached a high of ₹346.60, and touched a 52-week low of ₹340.05 during early trading.

This marks the second consecutive session in which the company’s shares have hit a fresh 52-week low.

Star Health Addresses Allegations 

Star Health and Allied Insurance has addressed recent concerns regarding its claim settlement practices, following reports that the Insurance Regulatory and Development Authority of India (IRDAI) has flagged serious lapses.

In an official statement, the insurer clarified that it has not received any direct communication from the regulator regarding any irregularities.

“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 media statement appeared to be speculative and motivated in nature, and we have not received any communication on this subject from the regulator,” the company stated in a press release on the stock exchanges.

IRDAI’s Findings on Star Health’s Claim Settlement Practices

According to a CNBC-TV18 report, IRDAI has identified major issues in Star Health’s claim settlement practices, including a high number of customer grievances.

The insurance watchdog has been reviewing various claim-related parameters such as claim rejections, deductions, and the nature of queries raised by policyholders.

In addition to Star Health, IRDAI has examined 8-10 other health and general insurers in India, although no reports of action against them have surfaced yet.

Star Health’s Claim Settlement Record

As per IRDAI’s 2023-24 insurance statistics, Star Health’s incurred claim ratio stood at 66.47%. This means that for every ₹100 collected as premiums, the company paid out approximately ₹67 in claims.

This figure is slightly higher than the overall incurred claim ratio of stand-alone health insurers (63.63%) but notably lower than the industry-wide average of 82.52% for all health and general insurers in India.

Conclusion

While Star Health has denied receiving any formal notice from IRDAI, the ongoing regulatory review has cast a spotlight on claim settlement practices within the insurance industry.

Policyholders will be closely monitoring developments, as the outcome of this review could impact customer confidence and influence regulatory measures across the sector.

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