Shares of Star Health and Allied Insurance fell over 2% following the announcement that the Insurance Regulatory and Development Authority of India (IRDAI) had issued a show cause notice to the insurer. The notice, dated December 4, 2024, pertains to alleged violations of several regulations based on an inspection conducted by the IRDAI for the period between January 31, 2022, and February 11, 2022.
The company stated in an exchange filing that it had received the show cause notice regarding violations of IRDAI (Health Insurance) Regulations, 2016, IRDAI (TPA – Health Service) Regulations, 2016, and IRDAI (Protection of Policyholders’ Interest) Regulations, 2017, among other norms. Star Health is required to provide a response to the notice within 21 days of receipt, along with the relevant supporting documents.
The insurer assured that it is in the process of addressing the violations and does not anticipate significant impacts from the issue. However, the outcome of the matter and its full implications remain uncertain at this stage.
As of December 9, 2024, Star Health shares were down over 2%.
Stock Performance:
- 1 Day: -2.07%
- 5 Days: +2.23%
- 1 Month: -4.69%
- 6 Months: -9.54%
- Year to Date: -10.86%
- 1 Year: -16.65%
- 5 Years: -43.38%
- All Time: -43.38%
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