Niva Bupa, Acko General Insurance barred from opening places of biz for 6 months

MUMBAI: The Insurance Regulatory and Development Authority of India (Irdai) has warned Niva Bupa Health Insurance and Acko General Insurance for exceeding prescribed Expenses of Management (EoM) limits in FY25 and barred both insurers from opening new places of business for six months. EoM includes costs such as operational expenses and distribution costs incurred by insurance companies.

Niva Bupa's allowable expense for FY25 was Rs 2,403.75 crore, while its actual expenses stood at Rs 2,652.12 crore, exceeding the limit by Rs 248.37 crore, according to the regulator's order.

Irdai has prescribed limits to ensure insurers control management and operating costs so that a reasonable portion of premiums collected from policyholders is available for providing insurance cover and settling claims.


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The health insurer had also exceeded its EoM limit in FY24, for which Irdai had granted forbearance in December 2024.

For FY25, Niva Bupa sought forbearance citing business expansion, investments in technology, brand transition, and efforts to achieve scale and improve customer centricity.

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Irdai, however, rejected the request, noting that the insurer had once again breached the prescribed limits. Acko General Insurance exceeded its allowable expenses by Rs 334.78 crore in FY25.

The insurer's allowable expenses were Rs 650.37 crore, while actual expenses stood at Rs 985.15 crore.