The Insurance Regulatory and Development Authority of India has imposed a penalty of ₹3.39 crore and issued a warning to Star Health and Allied Insurance Company for violations under IRDAI Information & Cyber Security Guidelines, 2023.
The regulator, however, did not elaborate on the violations in its July 25th communication.
On Saturday (July 26, 2025), intimating the stock exchange of the action, Star Health said the penalty has been levied with respect to certain aspects pertaining to safeguard of data and cyber security. It said the financial impact is restricted to the penalty amount and no impact is expected on the operation or other activities of the company. The options available for addressing the matter are being evaluated, including appealing against the order of IRDAI to SAT.
The standalone insurer was in the spotlight last year after it came under a cyber attack in which personal data of customers got breached.
The company’s leadership had in October confirmed the cyber attack and pointed to how it responded swiftly and decisively. In the wake of the attack it was working very closely with cyber security experts, regulatory and law enforcement authority to thoroughly investigate the breach. It had also succeeded in taking down the data exposed, a senior executive said. The insurer said it was fortifying its systems with advanced security measures and controls to prevent any future incidents.
Published – July 26, 2025 06:36 pm IST