Mumbai: Niva Bupa Health Insurance has been barred from opening new places of business for six months after the insurance regulator found that the company had failed to comply with expense of management limits for 2024-25.
Irdai in an order issued Aug 19, also warned the insurer for the breach. Niva Bupa said it complied with the expense of management regulations for the year ended March 31, 2026, and the quarter ended June 30, and remains on track to comply with the rules for 2026-27.
The company said the order would have no quantifiable financial impact.
The action followed a regulatory examination of Niva Bupa’s expenses for 2024-25. Irdai found that the insurer had not complied with Regulation 6, read with Regulations 10, 11 and 19, of the Irdai (Expenses of Management, including Commission of Insurers) Regulations, 2024.
The rules set limits on insurers’ expenses, including operating costs and commissions. Regulation 6 prescribes the limits on expenses of management, while the other provisions cover the calculation, reporting and compliance requirements. Niva Bupa said it is evaluating the order and will take appropriate steps to safeguard the interests of stakeholders.
