The Insurance Regulatory and Development Authority of India (IRDAI) has taken regulatory action against Niva Bupa Health Insurance Company and Acko General Insurance by barring both insurers from opening any new places of business for a period of six months.
For Niva Bupa, the restriction takes effect from August 19, 2026. The action stems from non-compliance with applicable Expense of Management (EoM) limits for the financial year 2024-25. Prior to issuing the order, the regulator had sought an explanation from the company regarding its EoM limits for FY 2024-25, to which the insurer had submitted its responses.
In a disclosure made to the BSE on Thursday, Niva Bupa stated that it is currently evaluating the order and will take appropriate steps to safeguard the interests of its stakeholders.
The insurer further added that it remained in compliance with the IRDAI (Expenses of Management, including Commission of Insurers) Regulations, 2024, for the full financial year ended March 31, 2026, as well as for the first quarter ended June 30, 2026. The company stated that it is on track to ensure compliance with the said EoM regulations for the full financial year ending March 31, 2027.
In a separate order, the insurance regulator imposed a similar six-month restriction on Acko General Insurance. IRDAI barred Acko from opening new places of business for six months and issued a warning to the insurer for failing to ensure compliance with applicable EoM limits for the financial year 2024-25.
"Regulatory compliance is a foundational pillar for financial and insurance enterprises operating in the Indian market. The strict enforcement of Expense of Management limits by the IRDAI highlights the growing regulatory focus on operational efficiency and financial discipline. Companies in the insurance sector must closely monitor their cost structures and regulatory filings to avoid growth restrictions that impact business expansion. For stakeholders, such regulatory interventions signal a tighter oversight environment, making robust internal controls essential for long-term operational continuity." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
