Star Health Denies Receiving IRDAI Communication On Claims Settlement Lapses

Star Health and Allied Insurance Ltd. said on Tuesday that it has not received any communication from the Insurance Regulatory and Development Authority of India regarding lapses in its claims settlement practices, countering media reports on the matter.

The company said that IRDAI conducts regular audits and thematic inspections as part of its regulatory oversight 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 insurer said in a statement to the exchanges.

The statement came after media reports claimed earlier on Tuesday that that IRDAI had identified lapses in the company’s claims settlement practices. Following these reports, Star Health’s shares fell as much as 3.8% to Rs 345.30 before closing 3.3% lower. The Nifty index remained largely unchanged.

Fifteen out of the 23 analysts tracking the company have a 'buy' rating on the stock, four recommend a 'hold' and four suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 47.8%.