IRDAI Bars Niva Bupa From Opening New Offices for Six Months
Niva Bupa said the regulator acted after it missed expense management limits, and shares fell 1.70% on the BSE.
- On Thursday, the Insurance Regulatory and Development Authority of India barred Niva Bupa Health Insurance and Acko General Insurance from opening new branches for six months, citing failure to comply with 2024-25 expense management limits.
- Both insurers exceeded permissible Expenses of Management limits during 2024-25, which are designed to control operational costs and protect policyholders from unnecessarily high premiums.
- IRDAI stated the firms were "warned for failure to remain within prescribed EoM limits and directed not to open any new place of business for six months." EoM includes operational and distribution costs.
- Niva Bupa Health Insurance shares fell 1.70% on the BSE following the announcement. The company is evaluating the order and noted compliance for the 2025-26 fiscal year and April-June quarter.
- Reaffirming its commitment to financial stability, IRDAI indicated it would continue taking enforcement actions against regulatory non-compliance. These expense limits safeguard insurers' solvency and operational efficiency.
12 Articles
12 Articles
The Insurance Regulatory and Development Authority of India has taken significant action against health insurance company Niva Bupa. The regulator has barred the company from opening new branches for the next six months. This matter relates to non-compliance with expense management limits for the 2024-25 fiscal year. Following the order, the company's shares saw pressure.
India bars Niva Bupa from opening branches for six months due to expense breach
India's insurance regulator has barred Niva Bupa Health Insurance from opening new places of business for six months because of the breach of business expense limits, the health insurer said on Thursday.
The Economic Times
IRDAI bars Niva Bupa from opening new offices for six months
Niva Bupa Health Insurance received an order from the regulator to halt new business. This action stems from failing to meet expense management limits for the 2024-25 financial year. The company is currently evaluating the order and will take appropriate steps. Niva Bupa stated compliance for the 2025-26 fiscal year and the first quarter. Shares of Niva Bupa closed lower on the BSE following the announcement.
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