Daijiworld Media Network - New Delhi
New Delhi, Aug 21: Insurance regulator IRDAI has barred Niva Bupa Health Insurance from opening new places of business for six months after the insurer breached prescribed limits on expenses of management during the financial year 2024-25, the company said on Thursday.
In a statement, Niva Bupa said the breach related to expenses of management, which include operating costs as well as commissions paid to agents and distributors.
“IRDAI had sought explanation from the Company on Expense of Management EoM limits for financial year 2024-25. The Company had made submissions to IRDAI,” the insurer said in an exchange filing.
The health insurer said it complied with the prescribed expense limits for financial year 2025-26 and remains on track to stay within the regulatory limits during the current fiscal year.
Niva Bupa is backed by UK-based international healthcare group Bupa and is among the major standalone health insurers operating in India.
The regulatory action weighed on the company’s stock. Shares of Niva Bupa extended their losses during the session and closed 1.3 per cent lower following the announcement.
IRDAI issued its order on August 19, 2026, warning the company for non-compliance with the applicable EoM limits for FY 2024-25 and directing it not to open any new place of business for six months from the date of the order.
“The Company is evaluating the order and will take appropriate steps to safeguard the interest of stakeholder,” Niva Bupa said.
The six-month restriction comes as the insurer seeks to maintain compliance with regulatory norms governing management expenses and distribution costs.
Niva Bupa further said it was compliant with the IRDAI (Expenses of Management, including Commission of Insurers) Regulations, 2024 for the full financial year ended March 31, 2026, as well as for the quarter ended June 30, 2026.
The company said it is also on track to ensure compliance with the 2024 EoM regulations for the full financial year ending March 31, 2027.