** Star Health and Allied Insurance STAU.NS drops 1% to 394.25 rupees; stock opened 5.8% lower at session-low

** STAU's Q4 profit plunges 72% as, per brokerages, higher commissions and claims paid led to 3x surge in underwriting loss

** Jefferies (rating: "hold") says higher claims led to Start Health's first operating loss in three years

** But Motilal Oswal (rating: "buy") says it remains optimistic on STAU's long-term prospects

** Analysts' avg rating is "buy", similar to industry peers, per data compiled by LSEG

** STAU's stock has fallen ~17% so far this year

(Reporting by Nandan Mandayam in Bengaluru)

((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))