Economic Times2 days agoBusiness1 min readIndia

Niva Bupa Health Insurance faces six-month ban on new business from IRDAI

Regulator halts expansion due to non-compliance with expense management limits for the 2024-25 financial year.

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Niva Bupa Health Insurance has been ordered by the Insurance Regulatory and Development Authority of India (IRDAI) to halt opening new business locations for six months, citing failure to meet expense management limits during the 2024-25 fiscal year.

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Why It Matters

The IRDAI enforces strict limits on management expenses for insurance companies to ensure financial stability and consumer protection.

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Niva Bupa Health Insurance said on Thursday it has received an order from the Insurance Regulatory and Development Authority of India directing it not to open any new places of business for six months.

The insurance regulator took the action after finding that the insurer had failed to comply with the prescribed limits on expenses of management for the 2024-25 financial year, Niva Bupa said.

The company is evaluating the order and will take appropriate steps to safeguard the interest of stakeholders, the health insurer said in a filing to the stock exchange.

Niva Bupa said the regulatory action stems from its non-compliance with the prescribed expense of management limits for the 2024-25 financial year.

The insurer further added that the company is in compliance with Irdai (Expenses of Management, including Commission of Insurers) Regulations, 2024 for the full 2025-26 fiscal year, which ended on March 31, 2026 as well as for the April-June quarter of 2026 and is on track to ensure compliance with the said EoM Regulations, 2024 for the ongoing financial year.

Shares of Niva Bupa closed at Rs 82.61, down 1.70% over the previous close on the BSE.