IRDAI Steps In as Courts Question Star Health’s Claim Rejections

After multiple complaints and legal battles, IRDAI has finally taken notice of Star Health Insurance’s claim settlement issues. In 2023, the court ordered the insurer to pay ₹35,000 to a customer after wrongly rejecting a claim for viral fever. For the past 2-3 years, Star Health Insurance has faced multiple court cases over unfair claim rejections.

Court orders Star Health Insurance to pay Rs 35,000 to customer for rejecting viral fever claim

A court ruled that only a doctor can decide on hospitalization, not the insurer, after Star Health unfairly rejected a claim. The company was ordered to compensate the policyholder, reinforcing that medical decisions should be left to professionals, not insurers.

Only doctor can decide about hospitalisation': Court orders Star Health to pay compensation for rejecting claim

For years, policyholders have struggled with claim rejections, delays, and unfair deductions. Many cases have reached consumer courts, but no strict action was taken—until now. With growing legal pressure, IRDAI has stepped in to review the company’s claim processing methods.

According to the report, IRDAI examined various claim-related aspects, such as the number of claims repudiated and accepted, deductions, queries raised by policyholders, etc.

As per an official statement by Star Health, they have not received any communication from IRDAI on this matter

While Star Health maintains that it follows all regulations, IRDAI’s intervention brings hope for better claim approvals and fairer policies. Policyholders now expect more transparency and accountability in the health insurance sector.

   Star Health on IRDAI radar for health insurance claim settlement practices