Star Health Insurance has issued a statement addressing recent media reports regarding IRDAI’s observations on lapses in the company’s claims settlement practices. The company reassured its stakeholders that it remains committed to a customer-centric approach, ensuring its processes align with the best interests of policyholders.
The statement said,” We wish to reassure all our stakeholders that at Star Health Insurance, we are committed to a customer-centric approach, ensuring that our processes and practices align with the best interests of our policyholders”
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The company emphasised that IRDAI regularly conducts audits and inspections as part of its routine regulatory oversight, which is standard across the industry. Star Health clarified that the media reports seemed speculative and have not been based on any formal communication from the regulator.
IRDAI identifies issues in Star Health’s settlement claims
The Insurance Regulatory and Development Authority (IRDAI) has found significant issues in the claims settlement practices of Star Health and Allied Insurance, according to a CNBC TV18 report. The regulator is expected to take action after completing its investigation. IRDAI recently conducted inspections of Star Health’s claims processes, along with 8-10 other general and health insurers, focusing on areas like claims repudiation, approvals, queries, and deductions.
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This development follows Star Health receiving 25 tax demand orders from GST and Central Excise authorities across several states, totaling around Rs 49 crore, including penalties. The orders, issued for alleged violations such as non-payment of GST on coinsurance transactions and failure to disclose them or issue invoices, were filed by the company in an exchange statement.
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