The Insurance Regulatory and Development Authority of India (IRDAI) has imposed a monetary penalty of ₹3.39 crore on Star Health and Allied Insurance. The fine was issued for violations under the Information & Cyber Security Guidelines, 2023. A formal warning has also been issued by the regulator.
The order, dated July 25, 2025, did not disclose the specific violations. It only stated that the company failed to comply with multiple provisions under the cybersecurity guidelines introduced last year. These guidelines are applicable to all insurers.
In its regulatory filing to the stock exchange, Star Health said the penalty relates to certain data and cybersecurity matters. It also clarified that the impact is limited to the fine amount and there is no effect on other business activities.
Star Health mentioned that it is reviewing available legal remedies. One of the options being considered is filing an appeal with the Securities Appellate Tribunal (SAT). No formal decision has been announced yet.
The company had faced a cyberattack last year, during which customer data was compromised. The incident was confirmed in October 2024. At the time, the company stated it was working with relevant authorities and cybersecurity experts.
Star Health has 913 offices, over 14,000 network hospitals, and more than 7.75 lakh licensed agents. Its total employee strength stands at around 17,000.
In the financial year 2024-25, Star Health and Allied Insurance reported gross written premiums of ₹17,553 crore. Its net worth stood at ₹8,668 crore as per the company’s financial statements.
Read More: SBI Mutual Fund Invests ₹672 Crore in Star Health and Allied Insurance!
As of 11:37 AM on July 28, 2025, Star Health and Allied Insurance share price was trading at ₹423.10, a 0.47% decrease.
The company has acknowledged the regulator’s action and is assessing the next steps. No disruption in business operations has been reported so far.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jul 28, 2025, 9:25 AM IST
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