IRDAI Slaps ₹3.39 Crore Penalty on Star Health for Cyber Security Violations

1 min read     Updated on 26 Jul 2025, 08:54 PM
scanxBy ScanX News Team
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Overview

Star Health and Allied Insurance Company has been penalized ₹3.39 crore by IRDAI for violating Information & Cyber Security Guidelines, 2023. The company received the order on July 25 and is considering appealing to the Securities Appellate Tribunal. While the financial impact is limited to the penalty amount, Star Health assures no impact on its operations. The insurer operates through 913 offices and over 14,000 network hospitals, employing about 17,000 people and has more than 7,75,000 licensed agents. In the fiscal year, Star Health reported a Gross Written Premium of ₹17,553 crore and a Net Worth of ₹8,668 crore.

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*this image is generated using AI for illustrative purposes only.

Star Health and Allied Insurance Company Limited , one of India's leading health insurance providers, has been hit with a substantial penalty by the Insurance Regulatory and Development Authority of India (IRDAI) for breaching cyber security guidelines.

Penalty Details

The IRDAI has imposed a fine of ₹3.39 crore on Star Health for multiple violations of its Information & Cyber Security Guidelines, 2023. The company received the order on July 25, as disclosed in a regulatory filing to the stock exchanges.

Nature of Violations

According to the IRDAI order, the penalty has been levied "with respect to certain aspects pertaining to safeguard of data and cyber security." The regulator has also issued a warning to the company, underscoring the seriousness of the breaches.

Company's Response

Star Health, in its filing, stated that it is "evaluating the options available for addressing the matter including appealing to SAT (Securities Appellate Tribunal)." The company has assured that while the financial impact is limited to the penalty amount, no impact is expected on its operations or other activities.

Regulatory Compliance

The IRDAI order also contains advisory directions for Star Health to comply with the regulations and guidelines issued by the Authority on this subject. This emphasizes the regulator's focus on ensuring robust cyber security measures in the insurance sector.

Company Overview

Star Health operates through an extensive network of 913 offices and over 14,000 network hospitals. The insurer employs about 17,000 people and has more than 7,75,000 licensed agents. In the fiscal year, Star Health reported:

Financial Metric Amount (in ₹ crore)
Gross Written Premium 17,553.00
Net Worth 8,668.00

Market Impact

While the penalty is significant, it represents only a small fraction of the company's reported net worth. However, the incident highlights the increasing regulatory scrutiny on data protection and cyber security in the financial services sector.

As the insurance industry continues to digitize rapidly, this penalty serves as a reminder of the critical importance of maintaining robust information and cyber security protocols to protect sensitive customer data and maintain regulatory compliance.

Historical Stock Returns for Star Health Insurance

1 Day5 Days1 Month6 Months1 Year5 Years
-0.58%+3.44%+5.32%+2.76%-26.55%-50.91%
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SBI Small Cap Fund Acquires 3.41% Stake in Star Health And Allied Insurance

1 min read     Updated on 18 Jul 2025, 08:44 PM
scanxBy ScanX News Team
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Overview

SBI Small Cap Fund has purchased a 3.41% stake in Star Health Insurance during the first quarter of the financial year. This new investment marks a significant addition to the fund's portfolio and potentially signals confidence in Star Health Insurance's prospects. The investment could enhance Star Health's visibility among institutional investors and may impact its stock performance.

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*this image is generated using AI for illustrative purposes only.

In a notable development in the insurance sector, SBI Small Cap Fund has made a significant investment in Star Health Insurance . The mutual fund scheme has acquired a 3.41% stake in the insurance company during the first quarter of the financial year.

New Investment by SBI Small Cap Fund

This acquisition marks a new addition to SBI Small Cap Fund's portfolio, indicating the fund's interest in the insurance sector and specifically in Star Health Insurance. The 3.41% stake represents a substantial position, potentially reflecting the fund managers' confidence in the company's prospects.

Implications for Star Health Insurance

For Star Health Insurance, this investment by a prominent mutual fund could be seen as a positive signal. It may enhance the company's visibility among institutional investors and could potentially impact its stock performance.

About Star Health Insurance

Star Health Insurance is a key player in the Indian insurance market, specializing in health, personal accident, and overseas travel insurance. The company has been gaining attention in the financial markets, as evidenced by this recent investment.

While the exact reasons behind SBI Small Cap Fund's decision to invest in Star Health Insurance are not disclosed, such moves are typically based on thorough analysis of a company's financial health, market position, and growth potential.

Investors and market watchers will likely keep a close eye on how this new stakeholding might influence the insurance company's strategies and performance in the coming quarters.

Historical Stock Returns for Star Health Insurance

1 Day5 Days1 Month6 Months1 Year5 Years
-0.58%+3.44%+5.32%+2.76%-26.55%-50.91%
Star Health Insurance
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