Religare’s Care Health Insurance Receives IRDAI Show-Cause Notice

Religare Enterprises Ltd announced on Monday, December 16, that its material subsidiary, Care Health Insurance Ltd (CHIL), has received a show-cause notice and a letter of advice from the Insurance Regulatory and Development Authority of India (IRDAI). This follows an inspection conducted by IRDAI between August 30, 2021, and September 9, 2021, and subsequent submissions made by CHIL regarding the findings.

Details of Non-Compliance

The show-cause notice highlights multiple instances of non-compliance with IRDAI’s regulatory framework, covering key areas outlined in the master circulars issued in 2024. These include the Operations and Allied Matters of Insurers, Corporate Governance for Insurers, and Protection of Policyholders’ Interests. The specific violations point to lapses in governance, policyholder protection, and operational processes as detailed in the regulatory circulars.

Corrective Measures in Progress

Care Health Insurance is currently working on addressing the issues raised. As per the letter of advice, CHIL has been directed to confirm compliance within 21 days of receipt. The company also plans to submit its formal response to the show-cause notice, along with supporting documents.

Impact on Operations

Religare Enterprises talked about assuring the stakeholders that no financial or operational impact is expected at this stage. CHIL talked about being confident that compliance with the IRDAI’s directions will be achieved within the stipulated time frame.

Share Price Performance

As of 11:20 AM today, Religare Enterprises’ shares are trading at ₹316.65, up ₹15.40 (5.11%) today, with gains of 45.55% year-to-date and 41.71% over the past year.

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