Niva Bupa Health Insurance Company has received a Show Cause Notice from the Insurance Regulatory and Development Authority of India (IRDAI).
The Show Cause Notice relates to certain business and operational aspects of the company. Along with Show cause notice, IRDAI has also issued a Letter of Advice on certain matters, recommending compliance measures.
Niva Bupa said it is in the process of submitting its response to the show cause notice. It also said it is implementing the necessary actions as advised in the Letter of Advice.
“The Company is in process of implementing necessary actions as advised in the letter,” it said in its regulatory filing.
IRDAI flags alleged violations of health insurance, governance norms
The communication refers to alleged violations of certain provisions under the Master Circular on Health Insurance Business, the Master Circular on Protection of Policyholders’ Interest, and the Master Circular on Corporate Governance.
The company has not disclosed specific details of the alleged breaches but said they relate to business and operational matters.
Niva Bupa says impact on financials
IRDAI had carried out an inspection of Niva Bupa in February 2025. After the inspection, the regulator shared its observations with the company. Niva Bupa said it had duly responded to those observations.
The insurer clarified that there is no impact on its financials, operations, or other activities at this stage. It also confirmed that no penalty, restriction, or sanction has been imposed pursuant to the communication.
Share price of Niva Bupa
Niva Bupa informed about the update on exchanges on Friday, February 27, after markets hour. Reacting to the development, the stock of Niva Bupa opened in red on Monday’s trade. it has declined 2.04% in the intra-day trading session. The stock has declined 9.68% in past six months and 4.32% in past one month.