The Insurance Regulatory and Development Authority of India (Irdai) has barred standalone health insurer Niva Bupa and Acko General Insurance from opening any new place of business for six months from August 19, 2026. 

The action  came after the insurers failed with IRDAI (Expenses of Management, including Commission of Insurers) Regulations, 2024 (“EoM Regulations, 2024”) for  2024-25. The overall expenses limit – including commissions and other management expenses – for general insurers and standalone health insurers is capped at 30% and 35%, respectively, of gross premium written in a financial year. 

According to Irdai, Niva Bupa’s total allowable expenses of management for 2024-25 were ₹2,403.75 crore, while its actual expenses stood at ₹2,652.12 crore, exceeding the prescribed limit by ₹248.37 crore.

Niva Bupa has sought forbearance from the regulator, citing business expansion initiatives, including expansion of its presence, investments in technology and brand transition, as well as efforts to achieve scale.  However, Irdai said it had already granted Niva Bupa forbearance for exceeding the EoM limits in 2023-24, and the insurer had missed the prescribed target for a second consecutive year.

Niva Bupa said it is well within the EoM limits for FY26 as well Q1FY27.  “The Company is evaluating the order and will take appropriate steps to safeguard the interest of stakeholders,’’ it said in a stock exchange disclosure on Thursday.

In a separate order, Irdai has also barred Acko General Insurance from opening new places of business for six months and warned the insurer for failing to comply with the applicable EoM limits for 2024-25. In Acko’s case, Irdai said the total allowable expenses of management for 2024-25 were ₹650.37 crore, while the company incurred actual expenses of ₹985.15 crore, exceeding the limit by ₹334.78 crore.

Irdai said the insurers were warned for their failure to remain within the prescribed EoM limits and directed not to open any new place of business for a period of six months from the date of the Order. It also directed the insurers to place the orders before their respective boards at the upcoming board meetings and submit copies of the minutes of the discussions to Irdai within the stipulated period.