Kathmandu. In India, the insurance regulator has imposed a cash penalty of Rs 3.39 crore (Rs 5.42 crore) against private sector insurer Star Health Insurance for leaking highly sensitive data related to the insured.
The Insurance Regulatory and Development Authority of India (IMA) on Friday warned about the violation of cyber security guidelines along with penalties under Section 114 (1) of the Insurance Authority Act and the Insurance Act 1938 under the Insurance Act 1938.
In August last year, it was revealed that sensitive data of 3.1 crore insured people had been leaked due to unauthorized access to star health insurance data.
The hacker group obtained mobile numbers, taxpayer registration details, addresses, and medical reports, establishing unauthorized access to the insurance company’s core database.
Data and evidence related to the stolen insured of the insurer, including medical reports, were publicly accessible on Telegram and through chatbots via websites.
The hacker group, which managed to maintain unauthorized access, sent death threats and gunshots to the company’s executive chief.
Star Health Insurance has informed the local authorities that there is no evidence to prove any fault of the head of the information technology department of the insurance company in the data leakage.
