Insurance Regulatory and Development Authority of India
Press Release | 20th August 2026
Orders in the matters of Acko General Insurance Limited and Niva Bupa Health
Insurance Co. Limited for non-compliance with Expenses of Management limits
The Insurance Regulatory and Development Authority of India (IRDAI) passed Orders against
Acko General Insurance Limited and Niva Bupa Health Insurance Co....
Insurance Regulatory and Development Authority of India Press Release | 20th August 2026 Orders in the matters of Acko General Insurance Limited and Niva Bupa Health Insurance Co. Limited for non-compliance with Expenses of Management limits The Insurance Regulatory and Development Authority of India (IRDAI) passed Orders against Acko General Insurance Limited and Niva Bupa Health Insurance Co. Limited for exceeding the permissible Expenses of Management (EoM) limits prescribed under the IRDAI (Expenses of Management, including Commission, of Insurers) Regulations, 2024, following off-site monitoring, examination of the insurer’s submissions and subsequent enforcement proceedings.
IRDAI lays down strict expense limits for insurers to ensure prudential cost norms are followed. The expense of management includes both operational expenses and distribution costs. Insurers are expected to operate within those limits to ensure control on excessive operating and management costs and ensure that a reasonable portion of the premium collected is used for providing insurance coverage and paying claims. These limits help protect policyholders from unnecessarily high premiums, encourage insurers to operate efficiently, maintain their financial stability and solvency.
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.
The insurers have also been directed to place the Order before their respective Boards in the upcoming Board meetings and submit a copy of the minutes of the discussion to IRDAI within the stipulated period.
The detailed Orders are available at IRDAI – Warnings and Penalties IRDAI remains committed to ensuring that insurers operate within the regulatory guardrails governing their expenses, thereby promoting sound financial management, transparency and accountability across the insurance sector. The Authority will continue to take appropriate supervisory and enforcement action wherever regulatory non-compliance is observed.