Star Health Insurance has recently responded to media speculation regarding the Insurance Regulatory and Development Authority of India’s (IRDAI) findings related to its claims settlement processes. The company reassured its stakeholders of its unwavering commitment to a customer-first approach, emphasizing that its practices are designed to prioritize the needs of policyholders.

Commitment to Policyholders

In a statement, Star Health Insurance expressed, “We want to emphasize to all our stakeholders that our primary focus remains on putting our customers first, ensuring that our processes align with the interests of our policyholders.” This commitment highlights the company’s dedication to transparency and accountability in its operations.

Regulatory Oversight and Industry Standards

Star Health clarified that the IRDAI conducts regular audits as part of its standard regulatory framework, a practice that is common across the insurance sector. The company noted that the recent media reports lacked substantial evidence and were not grounded in any formal communication from the regulatory body.

IRDAI’s Findings on Claims Settlement

According to a report by CNBC TV18, the IRDAI has identified critical shortcomings in the claims settlement practices of Star Health and Allied Insurance. The regulator is poised to take appropriate action following its thorough investigation. As part of its scrutiny, the IRDAI evaluated Star Health’s claims procedures alongside those of 8–10 other insurers, focusing on crucial areas such as claim rejections, approvals, inquiries, and deductions.

• Key areas of examination included:
  • Claims repudiation
  • Approval processes
  • Customer inquiries
  • Deduction practices

Recent Tax Demand Orders

This scrutiny comes on the heels of Star Health receiving a series of 25 tax demand orders from GST and Central Excise authorities across various states, amounting to nearly ₹49 crore, inclusive of penalties. These orders pertain to alleged infractions, including the non-payment of GST on coinsurance transactions and the failure to properly disclose or invoice for these transactions, as detailed in the company’s exchange statements.

Star Health Insurance is committed to addressing these regulatory challenges while maintaining its focus on customer satisfaction. As they navigate through these concerns, the company aims to reinforce its reputation as a trusted provider in the health insurance sector.