What happened: IRDAI restricts new branch openings
Insurance regulator IRDAI (Insurance Regulatory and Development Authority of India) barred Niva Bupa Health Insurance and Acko General Insurance from opening new branches for six months starting August 19.
IRDAI linked the restriction to findings that both insurers exceeded permissible Expenses of Management (EoM) limits for FY2024–25. IRDAI also warned both insurers for failing to remain within the prescribed EoM limits.
IRDAI stated that the determination followed off-site monitoring,examination of insurer submissions, andenforcement proceedings.
EoM exceedance figures cited by IRDAI for FY2024–25
IRDAI cited specific excess spending figures for FY2024–25: Niva Bupa Health Insurance: actual EoM higher than allowable by about ₹248 croreAcko General Insurance: actual EoM higher than allowable by about ₹335 crore
Related current affairs
- IRDAI places branch curbs on life insurers Pramerica and Edelweiss
- IRDAI okays reforms, policyholder fund norms, new general insurer
- Supreme Court raises third-party insurance period for new vehicles
- Insurance penetration remains low despite rapid growth in real estate sector
- Reforms push (key features of reforms in IRDAI)
- Insurers seek first third-party coverages in India’s motor scheme