IRDAI: The Insurance Regulatory and Development Authority of India (IRDAI) has imposed a huge fine of R3.39 crore against Star Health and Allied Insurance Company in a huge regulatory contravention. The fine was announced on July 25, 2025, as a result of the violations of the IRDAI Information & Cyber Security Guidelines, 2023 – nevertheless, the regulator did not specify what exactly the breaches were about.
The move was communicated to the stock exchange a day after on Saturday (July 26) by Star Health. The penalty was connected to the breaches in data protection and cybersecurity procedures, the insurer reported. Nonetheless, the company promised investors that the financial impact on it is only the amount of the fine and will not affect its business or the other daily activity.
It also said the company is considering legal avenues as well as challenging the case in the Securities Appellate Tribunal (SAT).
Scandal of Cyber Attack is not Too Distant
Star Health was in the headlines last year when it was swept by a big cyber attack. The penetration led to the leakage of confidential personal information owned by policyholders and this sent alarmist signals to the insurance industry.
To this end, the highest leadership of the company had issued a public notice in October claiming to have responded with speed and force to stop the breach. The insurance firms added that it had coupled with cybersecurity specialists, regulating authorities, and law enforcement to probe into the incident properly and even managed to dismantle the exposed information.
One of the top managers had promised that Star Health was strengthening its infrastructure by equipping it with up to date security systems that could prevent future cyber attacks.
This new penalty is an indication that IRDAI does not want to remain silent and insist that insurers should strengthen their cybersecurity and be serious in adopting data security standards.
Keep following the story as Star Health makes a decision on what to do next.
Braj Verma is a resident of Rajgarh in Madhya Pradesh and is a content writer and freelancer by profession. He has a degree in Political Science from Barkatullah University, Bhopal. He has expertise in subjects like credit cards, banking, loan, insurance, political analysis and digital marketing.