Niva Bupa, Acko Barred From Opening Branches Over EoM Limit Breach
Insurers penalised after exceeding prescribed Expenses of Management limits in FY25
Mumbai: The insurance regulator IRDAI on Thursday barred Niva Bupa Health Insurance and Acko General Insurance from opening new branches for six months after finding that both insurers exceeded the permissible Expenses of Management (EoM) limits for 2024-25.
“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, under Regulation 22(1)(b) and (c) of the EoM Regulations, 2024,” said the the Insurance Regulatory and Development Authority of India (IRDAI) in a statement.
Niva Bupa incurred actual expenses of Rs 2,652.12 crore against the allowable expenses of Rs 2,403.75 crore, resulting in an excess expenditure of Rs 248.37 crore. For Acko General the allowable expenses were Rs 650.37 crore, while it incurred actual expenses of Rs 985.15 crore, resulting in Rs 334.78 crore excess expenditure.
The two insurers were found to have exceeded the permissible EoM limits prescribed under the IRDAI (Expenses of Management, including Commission, of Insurers) Regulations, 2024, following off-site monitoring, examination of their submissions and subsequent enforcement proceedings, the regulator said.
