Niva Bupa Health Insurance failed to comply with limits on expenses of management, which comprises operating costs and commissions paid to agents and distributors, during fiscal year 2024-25, as per the IRDAI statement
The company is evaluating the order and will take appropriate steps to safeguard the interest of stakeholders, said Niva Bupa Health Insurance in a statement.
New Delhi: India’s insurance regulator IRDAI 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 insurer failed to comply with limits on expenses of management, which comprises operating costs and commissions paid to agents and distributors, during fiscal year 2024-25, as per the IRDAI statement.
Earlier, the IRDAI had sought explanation from the company on Expense of Management (EoM) limits for financial year 2024-25 and the company had made submissions to the IRDAI
In this regard, IRDAI issued an order on Wednesday whereby the company has been warned for not complying with the applicable EoM limits for the FY 2024-25 and has directed not to open new place of business for a period of six months from the date of order.
The company,backed by UK-based international healthcare group Bupa, is evaluating the order and will take appropriate steps to safeguard the interest of stakeholders, said Niva Bupa Health Insurance in a statement.
“Further, it may be noted that the company is in compliance with the IRDAI (Expenses of Management,including Commission of Insurers) Regulations, 2024 (“EoM Regulations, 2024”) for the full financial year ended March 31, 2026 as well as for the period Q1 ended June 30, 2026 and is on track to ensure compliance with the said EoM Regulations, 2024 for the full Financial Year ending March 31, 2027,” the stand alone health insurer(SAHI) added..
Niva Bupa, , said it complied with the expense rules for fiscal 2025-26 and was on track to remain compliant in the current fiscal.
Intensifying competition in India’s insurance sector has pushed up distribution costs, with commissions rising across the industry.
IRDAI is seeking to reform how distributors are paid in an effort to curb mis-selling of policies and reduce high distribution costs in one of the world’s fastest-growing insurance markets.
Expenses for health insurers should not exceed 35% of gross written premiums in a financial year.
Shares of Niva Bupa extended losses to close 1.3% lower after the announcement.
With inputs from Agencies