Niva Bupa Health Insurance said on Thursday that it has received an order from the Insurance Regulatory and Development Authority of India (IRDAI) restricting it from opening new places of business for six months.
The regulatory action follows the insurer’s failure to comply with prescribed limits on expenses of management (EoM) during the 2024-25 financial year, the company said in a filing with the stock exchange.
Action linked to 2024-25 expenses
Under the order, Niva Bupa cannot open any new places of business for the next six months. The company said it is currently evaluating the regulator’s direction and will take appropriate steps to protect the interests of its stakeholders.
The insurer said the action specifically relates to its non-compliance with the prescribed EoM limits for the financial year ended March 31, 2025.
Expenses of management broadly cover the costs incurred by an insurer in running its business, including certain operating and distribution-related expenses. IRDAI has prescribed limits for such expenses under its regulatory framework.
Insurer says later compliance is on track
Niva Bupa said its compliance position has improved since the period that led to the regulatory action.
The company said it complied with the IRDAI (Expenses of Management, including Commission of Insurers) Regulations, 2024 throughout the 2025-26 financial year, which ended on March 31, 2026.
It also said it remained compliant during the April-June quarter of 2026 and is on track to meet the EoM requirements for the ongoing financial year.
The six-month restriction on opening new offices comes as Niva Bupa continues to operate its existing business network. The company has not indicated that the order affects its existing places of business.
Niva Bupa shares end lower
The regulatory development also came into focus in the stock market. Shares of Niva Bupa closed at ₹82.61 on the BSE on Thursday, down 1.70% from the previous close.
The insurer said it is assessing the IRDAI order and will take appropriate action following its review.