IRDAI bars Acko General, Niva Bupa Health from opening new branches for exceeding EoM limits
The Indian insurance regulator IRDAI has prohibited Niva Bupa Health Insurance and Acko General Insurance from opening new branches for six months. This action follows the discovery that both companies exceeded their permissible Expenses of Management limits for the 2024-25 fiscal year.
Why it matters
This regulatory enforcement highlights the government's effort to curb excessive operational costs in the insurance sector to protect policyholders and ensure financial solvency.
Insurance regulator IRDAI has barred Niva Bupa Health Insurance and Acko General Insurance from opening new branches for six months after finding that both insurers exceeded the permissible Expenses of Management (EoM) limits for 2024-25.
They were “warned for failure to remain within prescribed EoM limits and directed not to open any new place of business for six months” from August 19 order, the Insurance Regulatory and Development Authority of India said on Thursday.
The two insurers were found to have exceeded the permissible EoM limits prescribed under the IRDAI (Expenses of Management, including Commission, of Insurers) Regulations, 2024, following off-site monitoring, examination of their submissions and subsequent enforcement proceedings, it said.
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