IRDAI restricts Niva Bupa from opening new business locations for 6 months
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Insurance regulator IRDAI has directed Niva Bupa Health Insurance not to open any new place of business for six months after finding the insurer non-compliant with applicable Expense of Management (EoM) limits for financial year 2024-25.
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The Insurance Regulatory and Development Authority of India (IRDAI) issued the order on August 19, 2026, after seeking an explanation from the company over its EoM limits for FY25. Niva Bupa disclosed the development in a regulatory filing on Thursday.
“IRDAI issued an order on August 19, 2026, 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 a new place of business for a period of six months from the date of the order,” the insurer said.
EoM broadly covers the expenses incurred by an insurer in running its operations and servicing policyholders.
Restriction applies for six months
Under the order, Niva Bupa cannot open a new place of business for six months from August 19, 2026. The insurer said it is evaluating the order and will take appropriate steps to safeguard the interests of its stakeholders.
The company's filing said the violation involved non-compliance with Regulation 6 read with Regulations 10, 11 and 19 of the IRDAI (Expenses of Management, including Commission of Insurers) Regulations, 2024.
IRDAI's order, as disclosed by Niva Bupa, has no quantifiable financial impact on the company. The insurer also reported no expected financial implications from the regulatory communication.
Niva Bupa says current compliance intact
Niva Bupa stressed that the EoM issue relates to FY2024-25 and said it has since been compliant with the applicable regulations.
The insurer said it was in compliance with the IRDAI EoM Regulations, 2024 for the full financial year ended March 31, 2026, as well as for the quarter ended June 30, 2026.
It also said it is on track to ensure compliance with the regulations for the full financial year ending March 31, 2027.
Shares of Niva Bupa closed at ₹82.96 on Thursday, down 1.26% from the previous close on the NSE. The stock has declined 1.73% over the past year, underperforming the Nifty 500, which has gained over 1.5% during the same period.
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