Insurance Regulatory and Development Authority (IRDAI) has identified serious lapses in claims settlement practices of Star Health and Allied Insurance Company, a CNBC TV18 report stated, citing sources. IRDAI is expected to take action against the insurance company, after concluding its investigation.
IRDAI had recently concluded inspection of Star Health with respect to claims settlement practices, the report stated.
The regulator conducted inspections across 8-10 general and health insurance companies, scrutinising key aspects such as claims repudiation, approvals, queries raised, and deductions.
Shares of Star Health were down by 3.29 per cent at 4:40 pm at a trading price of Rs 347.25.
This comes a day after Star Health had received 25 tax demand orders across its zonal offices in Haryana, Delhi, Maharashtra, Tamil Nadu, Telangana and Karnataka. The orders, issued by various GST and Central Excise authorities, amount to a total demand of approximately Rs 49 crore, including penalties. In an exchange filing, the company said that the tax demands pertain to alleged violations, including non-payment of GST on coinsurance transactions as a follower, non-disclosure of such transactions in statutory returns and failure to issue invoices for coinsurance services.