New Delhi, August 20, 2026 (Yes Punjab News)
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 (EoM) during the financial year 2024-25.
Niva Bupa disclosed the regulatory action in a stock exchange filing on Thursday, stating that the Insurance Regulatory and Development Authority of India (IRDAI) had sought an explanation from the company regarding its compliance with EoM limits for FY2024-25.
The company said it had submitted its response to the regulator. IRDAI subsequently issued an order on August 19, 2026, warning the insurer for non-compliance with the applicable EoM limits and directing it not to open any new place of business for six months from the date of the order.
Expenses of management include operating costs as well as commissions paid to agents and distributors.
“The Company is evaluating the order and will take appropriate steps to safeguard the interest of stakeholder,” Niva Bupa said in its filing.
The insurer, however, said it complied with the prescribed EoM limits for the financial year ended March 31, 2026. It also said it remained compliant for the quarter ended June 30, 2026, and was on track to comply with the IRDAI (Expenses of Management, including Commission of Insurers) Regulations, 2024, for the full financial year ending March 31, 2027.
The six-month restriction comes as Niva Bupa continues to expand its health insurance operations while maintaining compliance with regulatory requirements governing management expenses and distribution costs.
Niva Bupa is backed by UK-based international healthcare group Bupa and is among India’s major standalone health insurers.
The regulatory action also weighed on the company’s stock. Shares of Niva Bupa extended their losses during Thursday’s trading session and closed 1.3 per cent lower following the announcement.
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